Jackson Industries has borrowed $125,000 under a line of credit agreement. Although the business normally maintains a
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Jackson Industries has borrowed $125,000 under a line of credit agreement. Although the business normally maintains a checking account balance of $15,000 at the lending bank, this line of credit requires a 20% equalizing balance. The established interest rate on the borrowed funded at 10%
What is the effective annual interest rate on the line of credit?
Related Book For
Principles Of Managerial Finance
ISBN: 978-0136119463
13th Edition
Authors: Lawrence J. Gitman, Chad J. Zutter
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