Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. ivanhoe, inc., has just set up a formal line of cr

Ivanhoe, Inc., has just set up a formal line of credit of $10 million with First...

70.2K

Verified Solution

Question

Finance

Ivanhoe, Inc., has just set up a formal line of credit of $10million with First Community Commercial Bank. The line of credit isgood for up to five years. The bank will charge Ivanhoe an interestrate of 7.00 percent on any amount borrowed, and the firm will payan annual fee of 60 basis points on the unused balance. The firmborrowed $8.0 million on the first day the credit line becameavailable. What is the effective interest rate on this line ofcredit? (Round answer to 2 decimal places, e.g. 12.25%.)

Answer & Explanation Solved by verified expert
3.9 Ratings (404 Votes)
Ivanhoe Inc has set up a formal line of credit of 10 million with First Community Commercial Bank The firm borrowed 80 million on the first day the credit line became available There are two types    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

?OpenSeas, Inc. is evaluating the purchase of a new cruise ship. The ship will cost $495...

Finance
Q

2.Put these events in the correct chronological sequence: 1. Upper motor neuron fires an action potential 2. T-tubules convey...

Medical Sciences
Q

What type of G protein is used to make cAMP as a second messenger?

Medical Sciences
Q

Problem Solve m x''+ kx = 0 for m=2 kg, k=18 N/m and the following initial...

Mechanical Engineering
Q

Are all colors equally likely for Milk Chocolate M&M's? Data collected from a bag of Milk...

Basic Math
Q

What is the answer to clue 5 Enter the value of x only do not...

Geometry
Q

Find the common difference of the sequence shown.1/6, 1/4, 1/31/121/31/6

Basic Math
Q

Let Use these values to evaluate the given definite integrals a S f x 9...

Calculus
Q

Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs...

Accounting
Q

Using the simplified method, determine the tax-free amount of the following distributions from a qualified...

Accounting
Q

Exercise 15-9 You have been given the following information about the production of Sheffield Co.,...

Accounting
Q

Discuss THREE disadvantages of having inadequate or shortage of working capital. Discuss THREE ways a...

Finance