Company, a financial institution, allows Integrity Company to borrow P1,300,000 with 8% interest. Honesty would require a compensating balance of 8% of the face value of the loan. What is the effective interest rate of the loan (round off your answer to two decimal places)?
Company, a financial institution, allows Integrity Company to borrow P1,300,000 with 8% interest. Honesty would require a compensating balance of 8% of the face value of the loan. What is the effective interest rate of the loan (round off your answer to two decimal places)?
Chapter16: Working Capital Policy And Short-term Financing
Section: Chapter Questions
Problem 14P
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Company, a financial institution, allows Integrity Company to borrow P1,300,000 with 8% interest. Honesty would require a compensating balance of 8% of the face value of the loan.
What is the effective interest rate of the loan (round off your answer to two decimal places)?
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