FIN 510 Holland Construction Co. has an outstanding 180-day bank loan of $400,000
January 2nd, 2018
Holland Construction Co. has an outstanding 180-day bank loan of $400,000 at an annual interest rate of 9.5%. The company is required to maintain a 15% compensating balance in its checking account. What is the effective interest rate for this loan?Select one:A. 11.18%B. 19.00%C. 22.35%D. 8.08%