Multiple Choice
Idaho Mining,Inc.borrows at prime plus 1.5% on its line of credit.The line requires a 15% compensating balance.If the prime rate is 9% and Idaho Mining plans on borrowing for a period of one year,what is the nominal APR of the line of credit?
A) 9.0%
B) 6.0%
C) 10.6%
D) 12.4%
Correct Answer:
Verified
Correct Answer:
Verified
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