If Analog Computers Can Borrow at 9

question 109

Multiple Choice

If Analog computers can borrow at 9.5% for 3 years,what is the annual rate of interest on an $800,000 loan where a 15% compensating balance is required?

• A) 11.18%.
• B) 17.27%.
• C) 9.50%.
• D) 3.16%.

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Definitions:

Strengths and Weaknesses

An analysis or assessment of the positive (strengths) and negative (weaknesses) internal aspects of an organization.

Straight-Line Depreciation

A system for spreading out the cost of a tangible asset in equal yearly amounts across its functional life.

Average Rate of Return

A financial metric used to evaluate the profitability of an investment, calculated as the average annual profit divided by the initial investment cost.

Annual Income

The total earnings or revenue generated by an individual or business in one fiscal year before any deductions.