Greetings, I've tried this problem several time and am getting it wrong. Not sure where my mistakes
Fantastic news! We've Found the answer you've been seeking!
Question:
Greetings,
I've tried this problem several time and am getting it wrong. Not sure where my mistakes are. Would truly appreciate any help. Thank you!
Your company has arranged a revolving credit agreement for up to $67 million at an interest rate of 1.36 percent per quarter. The agreement also requires your company to maintain a compensating balance of 5 percent of the unused portion of the credit line, to be deposited in a non-interest bearing account. Your company's short-term investment account at the same bank pays an interest rate of .50 per quarter. What is the effective annual interest rate if your company does not use the revolving credit arrangement during the year?
Posted Date: