Question: Alternative 1 Interest Effective Interest Rate (EIR) = X Net proceeds Inte Ist = 540 9830 x 9% x 3712 =14,250 1 Compensating Balance2020909 580,060-2980,0004/

Alternative 1 Interest Effective Interest Rate (EIR) = X Net proceeds Inte Ist = 540 9830 x 9% x 3712 =14,250 1 Compensating Balance2020909 580,060-2980,0004/ Meet proteeds 20500,00010.900,0090-0400,00017 -R EIR1 250/42500100 080 x 12/3 = 0.1125 x 1600 1125 x 100 = 11.23% 11.25%

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