Edison Mfg. needs to borrow $50,000 for six months. If the annual interest rate is 15%, what is the APY of a loan with interest paid in arrears and a 10% compensating balance?

Edison Mfg. needs to borrow $50,000 for six months. If the annual interest rate is 15%, what is the APY of a discount loan with a 10% compensating balance?

Answer rating: 100% (QA)

For the first question we can calculate the APY of the loan with interest paid in arrears and a 10 compensating balance as follows First we need to ca... View the full answer