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Assume that you need 1000000 to work with and you approach

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Assume that you need $1,000,000 to work with and you approach a bank for a loan. The loan is a discount loan (discount rate is 10%) with a compensating balance requirement of 5%. What is the cost of the loan, and how much would you ask for as the loan amount if you had to have $1,000,000?

Reference no: EM13566875

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Assume that you need 1000000 to work with and you approach : assume that you need 1000000 to work with and you approach a bank for a loan. the loan is a discount loan discount rate
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