If a firm borrows $500,000 at 10% and is required to maintain $50,000 as a minimum compensating

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If a firm borrows $500,000 at 10% and is required to maintain $50,000 as a minimum compensating balance at the bank, what is the effective interest rate on the loan?

10.0%
11.1%
9.1%
12.2%

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Practical Financial Management

ISBN: 978-1133593683

7th edition

Authors: William R. Lasher

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Posted Date: Feb 13, 2023 01:09 AM

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If a firm borrows $500,000 at 10% and is required to maintain $50,000 as a minimum compensating

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Practical Financial Management

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