Holland construction co has an outstanding 180-day bank


Question: Holland Construction Co. has an outstanding 180-day bank loan of $405,000 at an annual interest rate of 97 The company is required to maintain a 16% compensating balance in its checking account. What is the effective interest rate on the loan? Assume the company would not normally maintaln this average amount RUse 360 days in year. Round your answer to 2 decimal pleces)

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Finance Basics: Holland construction co has an outstanding 180-day bank
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