Acme Co.has a $100,000 line of credit at an annual rate of interest of 9.5 percent. The loan agreement also requires a 4 percent compensating balance on any funds used. What is the effective annual interest rate if the firm needs $60,000 for the entire year to fund its operations?
9.81% 9.50% 9.74% 9.90% 9.62%
Teddy's Pillows had beginning net fixed assets of $600 and ending net fixed assets of $680. Assets valued at $400 were sold during the year. Depreciation was $50. What is the amount of net capital spending?
$80 $130 $450 $180 $350