The loan called for a compensating balance of 15 percent


Morgan Contractors borrowed $2.15 million at an APR of 4.0 percent. The loan called for a compensating balance of 15 percent. What is the effective interest rate on the loan? (Round intermediate calculations to 4 decimal places, e.g. 1.2541 and final answer to 2 decimal places, e.g. 12.25%.)

The effective interest rate on the loan is ________ %

Request for Solution File

Ask an Expert for Answer!!
Financial Management: The loan called for a compensating balance of 15 percent
Reference No:- TGS02706310

Expected delivery within 24 Hours