Connecticut Advanced Technologies (CAT) is planning to get a 30-day $150,000 simple interest loan from its bank.

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Connecticut Advanced Technologies (CAT) is planning to get a 30-day $150,000 simple interest loan from its bank. The quoted interest rate on the loan is 10 percent. Calculate the APR and r_EAR assuming the loan

(a) Has no compensating balance requirement

(b) Has a 20 percent compensating balance requirement, and CAT currently holds no funds at the lending bank.

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ISBN: 978-1305666870

5th edition

Authors: Scott Besley, Eugene Brigham

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Question Posted: Feb 21, 2020 10:14 AM

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Connecticut Advanced Technologies (CAT) is planning to get a 30-day $150,000 simple interest loan from its bank.

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a Interest each 30 days 01012150000 1250 APR 0008333 x 1...View the full answer

CFIN

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