My company plans to borrow $5 million for 12 months with a 14% interest rate.
June 7th, 2024
My company plans to borrow $5 million for 12 months with a 14% interest rate. I want to know the effective rate of interest with 3 of the following types of loans.a) Simple 14% interest with a 10% compensating balance.b) Discounted interest.c) Discounted interest with a 5% compensating balance.