Cheap Money Bank offers your firm a discount interest loan at 9.85 percent for up to $25
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Cheap Money Bank offers your firm a discount interest loan at 9.85 percent for up to $25 million and, in addition, requires you to maintain a 4.5 percent compensating balance against the amount borrowed. What is the effective annual interest rate on this lending arrangement?
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Related Book For
Fundamentals Of Corporate Finance
ISBN: 9781265553609
13th Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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