Arthur Company Borrows $20,000 for One Year a 9% Interest

question 30

Multiple Choice

Arthur Company borrows $20,000 for one year a 9% interest, but must maintain a $1,600 compensating balance. The effective rate of interest on this loan is

• A) 9.0%.
• B) 17.0%.
• C) 9.8%.
• D) 8.0%.

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Definitions:

Assignor's Death

In contract law, the death of the assignor does not necessarily terminate the assignment unless the contract stipulates otherwise.

Delegable Duties

Delegable Duties are responsibilities or tasks that can be transferred or assigned from one party to another, typically in a work or contract context.

Uniform Commercial Code

A comprehensive set of laws governing commercial transactions in the United States, aiming to harmonize the law of sales and other commercial transactions across state lines.

Public Policy

Principles and standards regarded by the legislature or by courts as being of fundamental concern to the state and the whole of society.