The effective annual interest rate on this lending

Assignment Help Financial Management

Reference no: EM132049967

You've worked out a line of credit arrangement that allows you to borrow up to $60 million at any time. The interest rate is .591 percent per month.

In addition, 3 percent of the amount that you borrow must be deposited in a noninterest-bearing account. Assume that your bank uses compound interest on its line-of-credit loans.

What is the effective annual interest rate on this lending arrangement?

Reference no: EM132049967

Questions Cloud

Determine vendors profit for that day : For finishing the stock, he sold remaining hotdogs for $5/piece. Determine vendor's profit for that day?

What will be veggie burgers incs optimal cash return point : The effective annual rate on marketable securities to be 4.9 percent per year, and the trading cost per sale or purchase of marketable securities to be $28.50.

Compare and contrast the aspect of islamic art : Compare and contrast the aspect of Islamic art with art of another culture that is centrally concerned with pictorial representations

Identify three strategies team writers can apply : Business writing is changing in this new age of technology. Identify three strategies team writers can apply to improve business

The effective annual interest rate on this lending : You've worked out a line of credit arrangement that allows you to borrow up to $60 million at any time. The interest rate is .591 percent per month.

Sanction for criminal justice offenders : Are politicians correct when they assume that the public demands increasingly harsher sanction for criminal justice offenders?

How could we stop this feedback loop : How could we stop this feedback loop? people around the world are using more electricity

View aestheticism and concept of morality : Dr. Glas view aestheticism and concept of morality? (Schopenhauer and other philosophers were used as reference by Dr. Glas)

What will be its optimal cash return point : Veggie Burgers, Inc., would like to maintain its cash account at a minimum level of $247,000 but expects the standard deviation in net daily cash flows.

User Account

All Pages