I need the SEMI-annual rate as well as the effective annual rate for both State and Frost. Please help me answer these below, I am running out of chances on the assignment system, and just cannot figure this out....
Homework Answers
a. Interest on borrowing = 155,000 * 8.7% = 13,485
Compensating balance = 155,000 * 9.6% = 14880
Effective annual rate = 13,485 / ( 155,000 - 14880) = 9.62%
b. Interest on borrowing = 155,000 * 8.7% = 13,485
Effective annual rate = 13,485 / ( 155,000 - 13485) = 9.53%
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I need the SEMI-annual rate as well as the effective annual rate
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