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Question 10 0 out Florids Grape Growers (FGG) has a line of credit with Trust Company Bank that allows FGG to borrow up to $400,000 at an ancal interest rate of 11 percent Howeve roo must keep a compensatrg ba ree or 25 percent of any armount borrowed on deposit at tw Trust Company FOG don with the Trust Company hat is the effective annual cost of crede? Selected Answer Ob. t2.59% Correct Answer Oc.14 67% namany ha-aseb-ace Kme
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Home nert Page Layout Formulas Data Review View dd-Ins s Cut aCopy E AutoSum Wrap Text в 1 프 . Ej-., Δ. : rーー 逻锂函Merge & Center. $, % , 弼,8 C Paste Conditional Format CeInsert Delete Format Formatting as Table Styles2 Clear Sort &Find & Format Painter Clipboard Font Alignment Number Styles Cells Edting AD40 AD AE AF AG AH Al Al AK AL AM AN AO AP AQ AR 24 25 26 27 28 less: 29 30 31 32 compensating balance borrowing amount compensating balance net borrowing 400000 100000 (25% of 400000) interest payable 44000 (11%x 400000) effective rate of interest 14.67% (44000/30000O) (Though 400000 is borrowed, effective amount available is 300000 only) 34 35 answer 36 37 38 39 40 41 42 effective annual cost of credit: 14.67% LINE OF CREDIT miler Sheet3 BANKER ACCEPTANC0 22:14

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