What will be the effective rate of interest on loan

Reference no: EM131787692

Question: The treasurer for the Macon Blue Sox baseball team is seeking a $20,000 loan for one year from the 4th National Bank of Macon. The stated interest rate is 10 percent, and there is a 15 percent compensating balance requirement. The treasurer always keeps a minimum of $1,500 in the baseball team's checking accounts. These funds count toward meeting any compensating balance requirements. What will be the effective rate of interest on this loan?

Reference no: EM131787692

Questions Cloud

What is the break-even point per month in sales dollars : Clyde's Marina has estimated that fixed costs per month are $303,300, What is the break-even point per month in sales dollars

Describe the elements of the communication process : Describe the elements of the communication process. Illustrate with a simple example.

Carry out the operations on the data : ADTs are implemented by providing storage for the data items and algorithms to carry out the operations on the data.

Faithful representation of the adt : The implementation of an abstract data type is usually not a completely faithful representation of the ADT.

What will be the effective rate of interest on loan : The treasurer for the Macon Blue Sox baseball team is seeking a $20,000 loan for one year from the 4th National Bank of Macon.

Structures that can grow and shrink as needed : Pointers will prove useful in later chapters in building data structures that can grow and shrink as needed.

Effective rate of interest for the given types of loans : Your company plans to borrow $5 million for 12 months, and your banker gives you a stated rate of 14 percent interest.

Write a program to determine whether integer overflow : Write a program to determine whether integer overflow in your version of C++ results in the "wrap-around" behavior described in the text.

Prepare journal entries to record merchandising transactions : Prepare journal entries to record the following merchandising transactions of Bask Company, which applies the perpetual inventory system

User Account

All Pages