Bestor Bookkeeping has a $150,000 compensating balance loan with its bank. The terms of the loan call for Bestor to keep 8% of the loan as a compensating balance and pay interest at an annual rate of 7.50% on the entire amount
If the firm borrows the maximum amount for one year, how much interest is due at the end of the year?
A) $10,650
B) $11,250
C) $12,375
D) $14,250
Answer: B
Explanation: B) Interest due = rate × total loan amount = .075 × $150,000 = $11,250.
Business
You might also like to view...
________ is some list of all the members of the population
A) Sample estimate B) Sample directory C) Sample frame D) Population directory E) all of the above
Business
In addition to understanding the wants and needs of the target audience, what must marketers understand when introducing a new product into an established market segment?
What will be an ideal response?
Business