Holland construction co has an outstanding 180-day bank


Holland Construction Co. has an outstanding 180-day bank loan of $400,000 at an annual interest rate of 9.2%. The company is required to maintain a 14% compensating balance in its checking account. What is the effective interest rate on the loan? Assume the company would not normally maintain this average amount. (Use 360 days in a year. Round your answer to 2 decimal places.)

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Holland construction co has an outstanding 180-day bank
Reference No:- TGS02399233

Expected delivery within 24 Hours