HSBC has lent a $100,000 loan to the ben company for nine-month with an annual interest rate of 8%. the compensating balance requirement is 15%. the loan principal and interest must be paid in nine-month.
1). Assuming the checking balance would be zero without the loan, what is the effective interest rate of this loan?
2). What is the effective interest rate if the chequing accounts for $4,000 throughout the loan period without the loan?

Answer rating: 100% (QA)

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