Compensating balance required
If Analog computers can borrow at 9.5% for 3 years, what is the effective rate of interest on a $800,000 loan where a 15% compensating balance is required?
A. 11.18%
B. 17.27%
C. 9.50%
D. none of these
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At the end of your workday answer the reflective questions and share your responses with your trainer, coach or administrator.
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