Koopman's Chickens, Inc. plans to borrow $275,000 from its bank for one year. The annual rate of interest is 9%, but a compensating balance of 20% is required. What is the effective rate of interest?
A) Less than 10%
B) More than 10% but less than 11.6%
C) More than 11.6% but less than 12%
D) More than 12%
B) More than 10% but less than 11.6%
Business
You might also like to view...
How does the definition of a current liability relate to that of a current asset?
Business
Briefly describe an outcome frame. Negotiators with a strong outcome frame primarily engage in which type of negotiation?
What will be an ideal response?
Business
Answer the following statements true (T) or false (F)
Empirical research has proven that user needs are heterogeneous.
Business
Which of the following families tend to be matriarchal?
a. Canadian families b. Spanish families c. Islamic believers d. Jewish families
Business