FIN 510 Koopman’s Chickens, Inc. plans to borrow $300,000 from its bank for one year.
January 8th, 2018
Koopman’s Chickens, Inc. plans to borrow $300,000 from its bank for one year. The rate of interest is 10 percent, but a compensating balance of 15 percent is required. What is the effective rate of interest?Select one:A. 10.11%B. 11.76%C. 13.33%D. 14.12%