menu-iconExamlexExamLexServices

Discover

Ask a Question
  1. All Topics
  2. Topic
    Business
  3. Study Set
    Financial Management Theory and Practice Study Set 1
  4. Exam
    Exam 17: Working Capital Management and Short-Term Financing
  5. Question
    A Firm Needs $45,000 to Purchase Inventory
Solved

A Firm Needs $45,000 to Purchase Inventory

Question 104

Question 104

Multiple Choice

A firm needs $45,000 to purchase inventory.The bank requires a 5% compensating balance.With a stated interest rate of 15%,what is the effective interest rate?


A) 14.25%
B) 15.00%
C) 15.79%
D) 16.67%

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q99: Which statement best describes cash budgets?<br>A)Depreciation expense

Q100: A firm is offered trade credit terms

Q101: Helena Furnishings wants to reduce its cash

Q102: If a firm is involuntarily stretching its

Q103: Your firm needs $630 for one quarter

Q105: Which statement best describes working capital financing

Q106: The cost of an installment loan is

Q107: XYZ Inc.is planning a $200,000 90-day commercial

Q108: Which of the following methods CANNOT be

Q109: Determining a firm's optimal investment in net

Examlex

ExamLex

About UsContact UsPerks CenterHomeschoolingTest Prep

Work With Us

Campus RepresentativeInfluencers

Links

FaqPricingChrome Extension

Download The App

Get App StoreGet Google Play

Policies

Privacy PolicyTerms of ServiceHonor CodeCommunity Guidelines

Scan To Download

qr-code

Copyright © (2025) ExamLex LLC.

Privacy PolicyTerms Of ServiceHonor CodeCommunity Guidelines