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Yuki888 [10]
3 years ago
14

"Idaho​ Mining, Inc. borrows at prime plus​ 1.5% on its line of credit. The line requires a​ 15% compensating balance. If the pr

ime rate is​ 9% and Idaho Mining plans on borrowing for a period of one​ year, what is the nominal APR of the line of​ credit?"
Business
1 answer:
elena55 [62]3 years ago
8 0

Answer:

the  nominal annual percentage rate for the line of credit is 12.4%

Explanation:

The computation of the nominal annual percentage rate is given below:

Nominal Annual percentage rate is

= (Prime rate + line of credit)  ÷  (1 - compensation balance percentage)

= (9% + 1.50%) ÷ (1 - 15%)

= 10.50% ÷ 85%

= 12.4%

Hence, the  nominal annual percentage rate for the line of credit is 12.4%

The same should be considered

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Explanation:

The widespread acceptance that bacteria causes diseases helped lead to a public health movement in the late nineteenth and early twentieth centuries. This movement eventually brought​ sewers, clean drinking​ water, and garbage removal to all U.S. cities.

The public health movement in the United States in the late nineteenth and early twentieth centuries was like a technological advance to the​ country's production​ possibilities, since both EXPANDED the​ economy's productive​ capacity, the former by increasing the​ nation's EFFECTIVE WORKFORCE .

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