Koopmans chickens inc. plans to borrow 300000 from its bank, Ask an Expert

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Koopman's Chickens, Inc. plans to borrow $300,000 from its bank for one year. The rate of interest is 10 percent, but a compensating balance of 15 percent is required. What is the effective rate of interest?

A. Less than 11.4 percent

B. More than 11.4 percent, but less than 11.6 percent

C. More than 11.6 percent, but less than 11.8 percent

D. More than 11.8 percent

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M960896

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