Cost of Bank Loans Gifts Galore Inc. borrowed $1.75 million from National City Bank. The loan was made at a simple annual interest rate of 11% a year for 3 months. A 20% compensating balance requirement raised the effective interest rate. Do not round intermediate calculations. Round your answers to two decimal places. a. The nominal annual rate on the loan was 11.75%. What is the true effective rate? % b. What would be the effective cost of the loan if the note required discount interest? % c. What would be the nominal annual interest rate on the loan if the bank did not require a suined thly installmente?

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Reasons for Estate Planning

Planning is a process that helps decide in advance about future activities and operations. Planning helps to draft the procedures by identifying, analyzing, and designing how to work, when to work, by whom should be done, and what has to be done. It is the primary step followed by a person, business organizations, institutions, companies, etc.