Effective annual interest rate on this lending arrangement

Assignment Help Financial Management

Reference no: EM13768820

Come and Go Bank offers your firm a discount interest loan with an interest rate of 8 percent for up to $24 million, and in addition requires you to maintain a 1 percent compensating balance against the face amount borrowed.

Required:

What is the effective annual interest rate on this lending arrangement? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Effective annual rate %

Reference no: EM13768820

Questions Cloud

Use and ultimate sale of their primary residences : What are the three primary tax benefits homeowners enjoy in their purchase, use and ultimate sale of their primary residences?

Property held as a personal residence cannot be depreciated : If an individual actively participates in the management of a rental property, he may deduct the full amount of the passive activity losses from active income, regardless of his adjusted gross income. Property held as a personal residence cannot be d..

Summary of the business research process : Write a 300-word summary of the business research process by describing the business research process from your experience in the workplace or in an article you find through the University Library.

What did european explorers expect to find in the new world : Based on this passage, what did European explorers expect to find in the New World? Based on your reading this week, did they find what they were looking for? Why or why not

Effective annual interest rate on this lending arrangement : Come and Go Bank offers your firm a discount interest loan with an interest rate of 8 percent for up to $24 million, and in addition requires you to maintain a 1 percent compensating balance against the face amount borrowed. What is the effective ann..

Analyze the existing business strategies : Analyze the existing business strategies, domestic and global environments, industry, and internal capabilities for both Apple andSamsung. Assess the significant manner in which each company's mission and vision align with the long-terms goals and..

Specializing in the sale of opuses solely depicting : Assume that a department store, specializing in the sale of opuses solely depicting Domus Italica, has 6years remaining on its lease in a mall. Rent is $2,500 per month, 72payments remain, and the next payment is due in a month. The mall’s owners, An..

Foreign sovereign immunities act : Which of the following is provided under the Foreign Sovereign Immunities Act

A p-value provide a true measure of statistical significance : Why does a p-value provide a true measure of statistical significance? Try to relate your answer to previously covered concepts - example continuous probability distributions.

User Account

All Pages