If Analog Computers Can Borrow at 8% for Three Years

question 81

Multiple Choice

If Analog Computers can borrow at 8% for three years, what is the effective rate of interest on a $1,000,000 loan where a 15% compensating balance is required?

• A)11.18%
• B)17.27%
• C)9.41%
• D)None of these options

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Definitions:

Good Luck

A favorable or beneficial circumstance that happens by chance, often considered an element of success not attributable to one's actions.

Halo Effect

A cognitive bias where the perception of one positive quality in a person leads to the unjustified extension of positive evaluation to other qualities.

Favorable Impression

The positive perception or judgment of someone or something based on initial interactions or information.

Interview Bias

A type of response bias that occurs in research when the interviewer’s beliefs, views, or characteristics unduly influence the subject's responses, leading to skewed results.