Business, 05.05.2020 16:02, hailey2910

AIE Industries plans to purchase a new delivery truck for $250,000. The company has been quoted an annual rate of 6.5 percent with discount interest and a compensating balance of 2 percent.
a. How much will AIE have to borrow?
b. What is the effective rate on this loan?

c. If AIE can convince the bank to remove the compensating balance requirement, what is the effective rate?

Answers: 3

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AIE Industries plans to purchase a new delivery truck for $250,000. The company has been quoted an a...