corporate finance
Carey Company is borrowing $200,000 for one year at 12 percent from Second National Bank. The bank requires a 20 percent compensating balance.
a. What is the annual rate of interest? (Use 365 days a year.)
Annual rate of interest %
b. What would the annual rate be if Carey were required to make 12 equal monthly payments to retire the loan? (Use 365 days a year. Round the final answer to 2 decimal places.)
Instalment loan %
Homework Answers
a= 15%
B= 27.69%
I would explain but explaining isn't my forte.
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