A bank lends a firm $1,000,000 for one year at 12 percent on a discounted basis and requires compensating balances of 10 percent of the face value of the loan. The effective annual interest rate associated with this loan is ________
A) 12 percent
B) 13.3 percent
C) 13.6 percent
D) 15.4 percent
D
Business
You might also like to view...
Which of the following is true of the word "variance" in analysis of variance?
A) It refers to differences between standard deviations. B) It is misleading. C) It is used to determine significance. D) It refers only to within variance. E) It is used because the test is designed to determine the differences between more than 4 variances.
Business
Which of the following is used to interconnect locations inside a packet switching network?
a. a PAD b. a Node c. an IXC d. none of the above
Business