The treasurer for the Macon Blue Sox baseball team is seeking a $23,600 loan for one year from the 4th National Bank of Maco stated interest rate is 10 percent, and there is a 15 percent compensating balance requirement. The treasurer always keeps a m of $2,280 in the baseball team's checking accounts. These funds count toward meeting any compensating balance requiremen What will be the effective rate of interest on this loan? Note: Use a 360-day year. Input your answer as a percent rounded to 2 decimal places. Answer is complete but not entirely correct. Effective rate of interest 18,60 %
The treasurer for the Macon Blue Sox baseball team is seeking a $23,600 loan for one year from the 4th National Bank of Maco stated interest rate is 10 percent, and there is a 15 percent compensating balance requirement. The treasurer always keeps a m of $2,280 in the baseball team's checking accounts. These funds count toward meeting any compensating balance requiremen What will be the effective rate of interest on this loan? Note: Use a 360-day year. Input your answer as a percent rounded to 2 decimal places. Answer is complete but not entirely correct. Effective rate of interest 18,60 %
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:The treasurer for the Macon Blue Sox baseball team is seeking a $23,600 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 $2,280 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?
Note: Use a 360-day year. Input your answer as a percent rounded to 2 decimal places.
> Answer is complete but not entirely correct.
18.60 X %
Effective rate of interest
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