Calculating the effective interest rate

Reference no: EM1334061

William Miklo is opening a new business and the bank will not give him a loan without a 20% compensating balance account. He needs $50,000 at 15% interest for one year and they want their interest in advance. What is the real interest rate they are charging him?

Reference no: EM1334061

Questions Cloud

Role of intent in criminal la : What is the role of intent in criminal law?

Discuss interest-floatation costs-call premium : Explanation of a specific item, for example, interest, floatation costs, call premium, of how to employ refunding tools and techniques to minimize cost of capital.

Define network activities and maintaining security : This solution provides the learner with an understanding of network activity monitoring. In particular, solution provides a discussion on potential management plans fo monitoring network activities and maintaining security of the network.

Civil and criminal law : What are the primary differences between criminal and civil law.

Calculating the effective interest rate : William Miklo is opening a new business and the bank will not give him a loan without a 20% compensating balance account.

Explain the internal and external factors : Explain the internal and external factors that have defined and shaped your organization in terms of its size, organizational structure, and processes.

Dealing with a situation of risk-adverse about gains : If you have ever watched the game show "Deal, or no deal" you have seen a real-world lesson in the tendency of people to be risk-adverse about gains. Observe the offers of the banker. In your organizations, how have leaders dealt with this situatio..

Determining the spped of a computer : determining the spped of a computer

Types of computer systems used in law office : Different types of computer systems used in a law office; and Describe the components in a computer network.

User Account

All Pages