What is the effective annual interest rate if the firm needs

Assignment Help Financial Management

Reference no: EM131549252

First Bank offers KNJ Co. a $100,000 line of credit at an annual rate of interest of 9.5 percent. The loan agreement also requires a 4 percent compensating balance on any funds used. What is the effective annual interest rate if the firm needs $60,000 for the entire year to fund its operations?

Reference no: EM131549252

Questions Cloud

Substantiate your arguments with clear evidences : Assess the marketing philosophy of Commercial Bank of Ethiopia. Which of the philosophies discussed, do you think, is adopted by the bank.

Compute aftertax cost of preferred stock : Compute the aftertax cost of preferred stock. Compute the aftertax cost of debt.

What are the unique challenges faced by european americans : What are some of the unique challenges faced by European Americans? What stereotypes should counselors of European Americans be aware of and work to avoid?

Chose two of the characteristics that willmington lays out : In at least 100 words, chose two of the characteristics that Willmington lays out and apply the scripture reference to that characteristic.

What is the effective annual interest rate if the firm needs : What is the effective annual interest rate if the firm needs $60,000 for the entire year to fund its operations?

Conduct the organizational profile needed for final project : Write a journal entry that will prepare you to conduct the organizational profile needed for your final project.

Present value of an annuity-what is the yield to maturity : Present value of an annuity (or bond, in this case, with semiannual coupon payments): What is the yield to maturity

Discuss the convenience sampling : When researchers use a convenience sampling for their study it can prove to be easier to obtain permission for the collection of their data.

Prepare a fire prevention program that you will present : Prepare a Fire Prevention Program that you will present via PowerPoint. You will draw idea from both your occupational and educational experience and knowledge.

User Account

All Pages