If x is 12 the answer is -12
Answer: 12.67%
Explanation:
The effective interest rate on a borrowing is the net annual interest cost divided by the net available proceeds from the borrowing. Dichter gross annual interest cost is $240,000 ($2,000,000 x 12%). Dichter is required to maintain a compensating balance of $400,000, which is $200,000 more than their normal balance of $200,000. Therefore, Dichter earns incremental annual interest revenue of $12,000 ($200,000 x 6%) on the excess compensating balance. The net annual interest cost is $228,000 ($240,000 - $12,000). The net available proceeds from the borrowing is $1,800,000 ($2,000,000 loan less $200,000 excess compensating balance). Therefore, the effective annual interest rate is 12.67%
A. “provides details about an investment offering”
its B 130%.
(Says I need to write at least 20 characters, sooo hows your day going?)
