A company has a limit of NOK 1,000,000 on its overdraft facility. Interest is charged to the overdraft account every quarter. They pay 6% interest p.a. and 0.15% commission each quarter. What will be the effective interest rate per year if the average deduction is 70%? Enter the percentage answer with two decimals.

Answer rating: 100% (QA)

To calculate the effective interest rate per year we need to take into account both the nominal inte... View the full answer