Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Jackson insutries has borrowed $125,000 under a line of credit agreement. While the company normally maintains a checcking acount balancce of $15,000 in the lending bank, this ccredit line requires a 20% ompensating balance. The stated interest rate on the borrowed funds is 10%. What is the effective annual rate of intestters on the line of credit?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M941351

Have any Question? 


Related Questions in Basic Finance

1 briefly describe the three key services that the

1. Briefly describe the three key services that the financial system provides to savers. 2. A student remarks: When I pay my insurance premiums, I never get that money back. My insurance premiums represent payments for a ...

Show how to combine a currency swap paying swiss francs at

Show how to combine a currency swap paying Swiss francs at a floating rate and receiving Japanese yen at a floating rate with another currency swap to obtain a plain vanilla swap paying Swiss francs at a floating rate an ...

1 what is the required rate of return on a common stock

1. What is the required rate of return on a common stock that is expected to pay a $0.75 annual dividend next year if dividends are expected to grow at 2% annually and the current stock price is $8.59? 2. Inc. paid $.130 ...

In planning this course we first wanted to cover financial

In planning this course, we first wanted to cover financial topics that are important to virtually anyone. This week's final chapters go on to discuss corporate concepts of WACC, NPV, IRR and working capital decisions an ...

Household budgetshould be in apa writing style1 create a

Household Budget Should be in APA writing style. 1. Create a simple household budget, including all income and expenses. There are various templates available online to help you do this. Find one that you feel comfortabl ...

Use secondary sources to write a report about typing skills

Use secondary sources to write a report about typing skills. You are the director of training for an aerospace firm located in Seattle. Your manager, Charles R. Underwood, vice president of human resources, is concerned ...

What are current assets if a market is price efficienta

What are current assets? If a market is price efficient, a. Can an investor "beat the market"? b. Which type of portfolio management-active or passive-is best? What does the financing decision of a firm involve? List the ...

Which is more apt to fail by hydrogen embrittlement an sae

Which is more apt to fail by hydrogen embrittlement, an SAE J429 Grade 5 or a Grade 8 fastener and why? Name at least three ways to reduce the possibility of hydrogen embrittlement ? What are the essential conditions for ...

Ethical dilemma- cindy and jack have always practiced good

Ethical Dilemma - Cindy and Jack have always practiced good financial habits, in particular, developing and living by a budget. They are currently in the market to purchase a new car and have budgeted $300 per month for ...

1 how would stephanies banking service decisions be

1. How would Stephanie's banking service decisions be different if she were a single mother of two children? 2. How would Stephanie's banking service decisions be affected if she were 35 years old? If she were 50 years o ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen