Determine the effective interest rate on the loan


Problem: The Apex supplies corporation needs to acquire 100 million in funds to expand their facilities. The bank has offered them a discounted loan at 10% and a compensating balance of 6% . What is the effective interest rate on this loan?

Solution Preview :

Prepared by a verified Expert
Finance Basics: Determine the effective interest rate on the loan
Reference No:- TGS01801427

Now Priced at $20 (50% Discount)

Recommended (95%)

Rated (4.7/5)