What is the effective percentage cost of the loan
Question: Apex Supplies borrows £1 million at 12 percent, payable in one year. If Apex is required to maintain a compensating balance of 20 percent, what is the effective percentage cost of its loan (in pounds)?
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If Apex is required to maintain a compensating balance of 20 percent, what is the effective percentage cost of its loan (in pounds)?
Q1. What are the net proceeds to Poland from this syndicated loan?
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