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Business, 27.05.2021 04:50 HeartfeltDream12
Hardy Company must maintain a compensating balance of $50,000 in its checking account as one of the conditions of its short-term 6% bank loan of $500,000. Hardy's checking account earns 2% interest. Ordinarily, Hardy would maintain a $20,000 balance in the account for transaction purposes. What is the loan's approximate effective interest rate
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Hardy Company must maintain a compensating balance of $50,000 in its checking account as one of the...
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