The company is required to maintain a 20 compensating


Francis Construction Co. has an outstanding bank loan of $600,000 at an annual interest rate of 8%. The company is required to maintain a 20% compensating balance in its chequing account. What is the annual interest cost on the loan?

 

 

Solution Preview :

Prepared by a verified Expert
Finance Basics: The company is required to maintain a 20 compensating
Reference No:- TGS02886997

Now Priced at $10 (50% Discount)

Recommended (95%)

Rated (4.7/5)