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borteleto borteleto
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6 years ago
DAS, Inc. has a line of credit with FBT Bank that allows DAS to borrow up to $400,000 at an annual interest rate of 11 percent. However, DAS must keep a compensating balance of 25 percent of any amount borrowed on deposit at the bank. DAS does not normally have a cash balance account with the bank. What is the effective annual cost of credit?
A) 11.45%
B) 12.59%
C) 14.67%
D) 16.00%
Textbook 
Foundations of Finance

Foundations of Finance


Edition: 9th
Authors:
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guzmanguzman
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borteleto Author
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#2
6 years ago
TY!
wrote...
#3
6 years ago
You're welcome
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