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)?

Solution Preview :

Prepared by a verified Expert
Finance Basics: What is the effective percentage cost of the loan
Reference No:- TGS02085413

Now Priced at $20 (50% Discount)

Recommended (91%)

Rated (4.3/5)