Minnerly Motors recently borrowed an equipment loan of $20,000 with a nominal.Discount interest rate of 12.5% with

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Minnerly Motors recently borrowed an equipment loan of $20,000 with a nominal.Discount interest rate of 12.5% with quarterly compounding that requires 10% compensating balance.

What is the effective annual rate (EAR) of the loan assuming 365-day per year?

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Essentials of Managerial Finance

ISBN: 978-0324422702

14th edition

Authors: Scott Besley, Eugene F. Brigham

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Posted Date: Jul 05, 2023 01:28 AM

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Minnerly Motors recently borrowed an equipment loan of $20,000 with a nominal.Discount interest rate of 12.5% with

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To calculate the effective annual rate EAR of the loan we need to take into account the nomi... View the full answer

Essentials of Managerial Finance

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