2B5DD THE EFFECTIVE ANNUAL INTEREST RATE TO THE BORROWER OF A $100,00...

183. - CMA EXAM SUPPORT PACKAGE 2
CMA EXAM SUPPORT PACKAGE 2

183.

CSO: 2B5f

LOS: 2B5dd

The effective annual interest rate to the borrower of a $100,000 one-year loan with a

stated rate of 7% and a 20% compensating balance is

a.

7.0%.

b.

8.4%.

c.

8.75%.

d.

13.0%.