Show the solution in good accounting form 13. Kenneth's Arrows and Bows borrow P10,000 for one year at 12% interest. What is the effective rate of interest ifthe loan is discounted?A. < 12.5%C. > 13.5% but < 14.5%B. > 12.5% but < 13.5%D. > 14.5%14. Koopman's Chickens, Inc. plans to borrow P300,000 from its bank for one year. The rate of interest is 10%, but acompensating balance of 15% is required. What is the effective rate of interest?A. <11.4%B. > 11.4% but < 11.6%C. > 11.6 % but < 11.8 %D. > 11.8 %

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Description: Show the solution in good accounting form 13. Kenneth's Arrows and Bows borrow P10,000 for one year at 12% interest. What is the effective rate of interest ifthe loan is discounted?A. 13.5% but 12.5% but 14.5%14. K

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13. Kenneth's Arrows and Bows borrow P10,000 for one year at 12% interest. What is the effective rate of interest if the loan is discounted? A. < 12.5% B. > 12.5% but < 13.5% C. > 13.5% but < 14.5% D. > 14.5% 14. Koopman's Chickens, Inc. plans to borrow P300,000 from its bank for one year. The rate of interest is 10%, but a compensating balance of 15% is required. What is the effective rate of interest? A. <11.4% C. > 11.6 % but < 11.8 % B. > 11.4% but < 11.6% D. > 11.8 %

13. Kenneth's Arrows and Bows borrow P10,000 for one year at 12% interest. What is the effective rate of interest if the loan is discounted? A. < 12.5% B. > 12.5% but < 13.5% C. > 13.5% but < 14.5% D. > 14.5% 14. Koopman's Chickens, Inc. plans to borrow P300,000 from its bank for one year. The rate of interest is 10%, but a compensating balance of 15% is required. What is the effective rate of interest? A. <11.4% C. > 11.6 % but < 11.8 % B. > 11.4% but < 11.6% D. > 11.8 %

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter22: Providing And Obtaining Credit

Section: Chapter Questions

Problem 4P: Gifts Galore Inc. borrowed 1.5 million from National City Bank. The loan was made at a simple annual...

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