You need to borrow money to purchase Holiday inventory.You have a $300,000 line of credit with a
Fantastic news! We've Found the answer you've been seeking!
Question:
You need to borrow money to purchase Holiday inventory.You have a $300,000 line of credit with a 12% compensating balance requirement. The quoted interest rate is 7.5% annually. You need to borrow $200,000 for inventory which you will pay back in exactly one year.How much money do you need to borrow?What is the effective interest rate?
Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-1259569197
8th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Olds
Posted Date: