How low interest rate on loan with compensating balance, Mathematics

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How low interest rate on loan with compensating balance

Assume your firm is looking for a six-year, amortizing $850,000 loan with annual payments and the bank is offering you choice between a $905,000 loan with $55,000 compensating balance and $850,000 loan without compensating balance. Interest rate on $850,000 loan is 9.0%. How low interest rate on loan with compensating balance have to be for you to selectit?

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Mathematics: How low interest rate on loan with compensating balance

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Request for Solution File

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Mathematics: How low interest rate on loan with compensating balance

Reference No:- TGS0866956

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Recent Questions Asked Mathematics

Q : Compute basis of the range and basis of null space

Q : Prepare tax consequences of distribution to timothy

Q : Company legal status

Q : Draw single binary tree with nodes for preorder travesal

Q : How low interest rate on loan with compensating balance

Q : Find equivalent units of direct materials-weighted average

Q : Determine project-s simple rate of return

Q : Find effect on company-s total net operating income

Q : Create report to illustrate effect on company-s income

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Request for Solution File

Ask an Expert for Answer!!

Mathematics: How low interest rate on loan with compensating balance

Reference No:- TGS0866956

Recent Questions Asked Mathematics

Q : Compute basis of the range and basis of null space

Q : Prepare tax consequences of distribution to timothy

Q : Company legal status

Q : Draw single binary tree with nodes for preorder travesal

Q : How low interest rate on loan with compensating balance

Q : Find equivalent units of direct materials-weighted average

Q : Determine project-s simple rate of return

Q : Find effect on company-s total net operating income

Q : Create report to illustrate effect on company-s income

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