You\'ve worked out a line of credit arrangement that allows you to borrow up to

Question

You've worked out a line of credit arrangement that allows you to borrow up to $40 million at any time. The interest rate is 0.615 percent per month. In addition, 5 percent of the amount that you borrow must be deposited in a noninterest-bearing account. Assume that your bank uses compound interest on its line of credit loans.

The effective annual interest rate on this lending arrangement ispercent.(Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16))

Suppose you need $15 million today and you repay it in 6 months. How much interest will you pay?.(Do not include the dollar sign ($). Round your answer to 2 decimal places. (e.g., 32.16))

You've worked out a line of credit arrangement that allows you to borrow up to $40 million at any time. The interest rate is 0.615 percent per month. In addition, 5 percent of the amount that you borrow must be deposited in a noninterest-bearing account. Assume that your bank uses compound interest on its line of credit loans.

Explanation / Answer

Similar ptoblem i solved yesterday here...please have a look this will help..

Question:

You

Related Questions

Navigate

• Browse (All)
• Browse Y
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.