Petir Bank has awarded Pelangi Berhad a loan of RM500,000. The interest rate was charged at a rate of 12 percent. The facility will be available for seven months. If the loan agreement requires a 15 percent compensating balance, compute the effective interest rate of the loan. Answer O 11.5 percent O 13.5 percent O 12 percent O 14.12 percent

Petir Bank has awarded Pelangi Berhad a loan of RM500,000. The interest rate was charged at a rate of 12 percent. The facility will be available for seven months. If the loan agreement requires a 15 percent compensating balance, compute the effective interest rate of the loan. Answer O 11.5 percent O 13.5 percent O 12 percent O 14.12 percent

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 18P

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