if a company borrows $100,000 at a 10% stated interest rate and is required to maintain a 15% compensating balance ($15,000), the effective interest rate would be:

A company obtained a short-term bank loan of $250,000 at an annual interest rate of 6%. As a condition of the loan, the company is required to maintain a compensating balance of $50,000 in its checking account. The checking account earns interest at an annual rate of 2%. Ordinarily, the company maintains a balance of $25,000 in its account for transaction purposes. What is the effective interest rate of the loan?

A company’s bank requires a compensating balance of 20% on a $100,000 loan. If the stated interest on the loan is 7%, what is the effective cost of the loan?

14. Holland Construction Co. has an outstanding 180-day bank loan of $400,000 at an annualinterest rate of 9.5%. The company is required to maintain a 15% compensating balance in itschequing account. What is the annual interest cost on the loan? Assume the company wouldnot normally maintain this average amount.A. 11.18%

The ratio that indicates if a borrowing company will be able to meet its required interest payments is the

Sunshine bank wants to earn an effective annual return on its customer loans of 15 percent per year.The bank uses daily compounding on its loans.What interest rate should the bank to report to the potential borrowers?A. 15%B. 15.41%C. 12.3%D. 13.98%E. 16.18%