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NEW QUESTION: 1
An entity borrows funds from its bank for a one-year period. The bank charges interest at a
nominal rate of 15% per annum, on a discount basis, and requires a 10% compensating balance. The effective annual interest rate on the loan is:
A. 25.00%
B. 17.65%
C. 16.67%
D. 20.00%
Answer: D
Explanation:
Discount interest is subtracted before the loan proceeds are paid to the borrower.
A compensating balance is an amount that the borrower must keep on deposit with the lender. The effective annual interest rate is increased by both the discount interest arrangement and by the compensating balance requirement: The effective rate equals the nominal rate dividend by one minus the sum of the nominal rate and 'the compensating balance percentage, or 20% [.15 - 1.0 - .15 - .1 O)].

NEW QUESTION: 2

A. Option B
B. Option D
C. Option A
D. Option C
Answer: B

NEW QUESTION: 3
Is this a valid CLI command enable ignore-stp vlan default?
A. TRUE
B. FALSE
Answer: A

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