A bank loan contract calls for an interest rate equal to, Ask an Expert

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A bank loan agreement calls for an interest rate equal to prime rate plus 1%. If prime rate averages 9% and non-interest-earning compensating balances equal to 10% of the loan must be maintained, what are the APR and the APY of the loan assuming annual payments?

With the information given, How do I find the APR and APY?

It seems that there is not enough information to find the APR and APY.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9273157

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