What is the effective rate of interest, Other Subject

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What is the effective rate of interest

Ohlin, Meade, and Assoc. plans to borrow $1 million for 12 months. Citibank gives the firm a stated rate of 10 percent interest.

What is the effective rate of interest if the loan carries a simple 10 percent interest with a 20 percent compensating balance?

What is the effective rate of interest if the bank uses a discounted loan?

What is the effective rate of interest if the loan is an installment loan with 12 payments?

What is the effective rate of interest if the loan is a discounted loan with a 5 percent compensating balance?

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Other Subject: What is the effective rate of interest

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