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Business, 25.05.2021 17:00 glosstear

New Town Bank offers you a line of credit of $50,000 with an interest rate of 2.1 percent per quarter. The loan agreement also requires that 2.5 percent of the unused portion of the credit line be deposited in a non-interest-bearing account as a compensating balance. Short-term investments are currently paying .68 percent per quarter. What is the effective annual interest rate on the line of credit if you borrow the entire amount for one year

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New Town Bank offers you a line of credit of $50,000 with an interest rate of 2.1 percent per quarte...
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