SlideShare a Scribd company logo
73. On January 1, 2010, Lynn Company borrows $2,000,000 from National Bank at 11% annual
interest. In addition, Lynn is required to keep a compensatory balance of $200,000 on deposit at
National Bank which will earn interest at 5%. The effective interest that Lynn pays on its
$2,000,000 loan is
a.  10.0%.
b.  11.0%.
c.  11.5%.
d.  11.6%.
Solution
Interest paid on $1.8 million = $198,000
Interest paid on $200,000 savings = $12,000 [$200,000×(11%-5%)]
Total interest paid = $210,000
Net funds received for utilisation = $1.8 million
Effective interest rate = 11.6% [$210,000÷$1,800,000]
Correct option is (d)
73- On January 1- 2010- Lynn Company borrows $2-000-000 from National.docx

More Related Content

More from rjessie

6- An airplane flies 450 km from Raleigh to Washington DC at 500 km-hr.docx
6- An airplane flies 450 km from Raleigh to Washington DC at 500 km-hr.docx6- An airplane flies 450 km from Raleigh to Washington DC at 500 km-hr.docx
6- An airplane flies 450 km from Raleigh to Washington DC at 500 km-hr.docx
rjessie
 
6- A 25-kg ball with a radius of 10 cm is submerged held halfway down.docx
6- A 25-kg ball with a radius of 10 cm is submerged held halfway down.docx6- A 25-kg ball with a radius of 10 cm is submerged held halfway down.docx
6- A 25-kg ball with a radius of 10 cm is submerged held halfway down.docx
rjessie
 
7- Write a mass action expression for the reaction between marble (CaC.docx
7- Write a mass action expression for the reaction between marble (CaC.docx7- Write a mass action expression for the reaction between marble (CaC.docx
7- Write a mass action expression for the reaction between marble (CaC.docx
rjessie
 
7- Flow and stock variables Identify whether each of the following is (1).docx
7- Flow and stock variables Identify whether each of the following is (1).docx7- Flow and stock variables Identify whether each of the following is (1).docx
7- Flow and stock variables Identify whether each of the following is (1).docx
rjessie
 
7- Heat is (a) a fluid called caloric- (b) a measure of the average ki.docx
7- Heat is (a) a fluid called caloric- (b) a measure of the average ki.docx7- Heat is (a) a fluid called caloric- (b) a measure of the average ki.docx
7- Heat is (a) a fluid called caloric- (b) a measure of the average ki.docx
rjessie
 
7- Flow and stock variables Identify whether each of the following is.docx
7- Flow and stock variables Identify whether each of the following is.docx7- Flow and stock variables Identify whether each of the following is.docx
7- Flow and stock variables Identify whether each of the following is.docx
rjessie
 
1)- The total number of ions present in iron (II) carbonate is -- 2)-.docx
1)- The total number of ions present in iron (II) carbonate is --  2)-.docx1)- The total number of ions present in iron (II) carbonate is --  2)-.docx
1)- The total number of ions present in iron (II) carbonate is -- 2)-.docx
rjessie
 
1) Which of the following can behave as Bronsted-Lowry bases in aqueou.docx
1) Which of the following can behave as Bronsted-Lowry bases in aqueou.docx1) Which of the following can behave as Bronsted-Lowry bases in aqueou.docx
1) Which of the following can behave as Bronsted-Lowry bases in aqueou.docx
rjessie
 
1) The rodent population in a city is currently estimated at 30-000- I.docx
1) The rodent population in a city is currently estimated at 30-000- I.docx1) The rodent population in a city is currently estimated at 30-000- I.docx
1) The rodent population in a city is currently estimated at 30-000- I.docx
rjessie
 
1) How is the current ratio calculated- 2) How does a classified balan.docx
1) How is the current ratio calculated- 2) How does a classified balan.docx1) How is the current ratio calculated- 2) How does a classified balan.docx
1) How is the current ratio calculated- 2) How does a classified balan.docx
rjessie
 
1) describe the conditions neccesary for a lunar eclipse to occur- and.docx
1) describe the conditions neccesary for a lunar eclipse to occur- and.docx1) describe the conditions neccesary for a lunar eclipse to occur- and.docx
1) describe the conditions neccesary for a lunar eclipse to occur- and.docx
rjessie
 
1) compare and contrast the properties of the terrestrial planets and.docx
1) compare and contrast the properties of the terrestrial planets and.docx1) compare and contrast the properties of the terrestrial planets and.docx
1) compare and contrast the properties of the terrestrial planets and.docx
rjessie
 
1- Lithium vapor is produced by heating lithium to its boiling point o.docx
1- Lithium vapor is produced by heating lithium to its boiling point o.docx1- Lithium vapor is produced by heating lithium to its boiling point o.docx
1- Lithium vapor is produced by heating lithium to its boiling point o.docx
rjessie
 
1- On November 28- 2013- Elliott Company purchased 10-000 shares of Fe.docx
1- On November 28- 2013- Elliott Company purchased 10-000 shares of Fe.docx1- On November 28- 2013- Elliott Company purchased 10-000 shares of Fe.docx
1- On November 28- 2013- Elliott Company purchased 10-000 shares of Fe.docx
rjessie
 
1) Bit-level transmission (or reception) is at the __- 2) Buffering at.docx
1) Bit-level transmission (or reception) is at the __- 2) Buffering at.docx1) Bit-level transmission (or reception) is at the __- 2) Buffering at.docx
1) Bit-level transmission (or reception) is at the __- 2) Buffering at.docx
rjessie
 
1- If S is a finite set and f is a 1-1 mapping of S into itself- show.docx
1- If S is a finite set and f is a 1-1 mapping of S into itself- show.docx1- If S is a finite set and f is a 1-1 mapping of S into itself- show.docx
1- If S is a finite set and f is a 1-1 mapping of S into itself- show.docx
rjessie
 
1- how did the paleolithic and neolithic ages differ and how did the n.docx
1- how did the paleolithic and neolithic ages differ and how did the n.docx1- how did the paleolithic and neolithic ages differ and how did the n.docx
1- how did the paleolithic and neolithic ages differ and how did the n.docx
rjessie
 
1- How can you assess if you are engaging in active listening- (Be spe.docx
1- How can you assess if you are engaging in active listening- (Be spe.docx1- How can you assess if you are engaging in active listening- (Be spe.docx
1- How can you assess if you are engaging in active listening- (Be spe.docx
rjessie
 
1- How can you assess if you are engaging in active listening- (Be spe (1).docx
1- How can you assess if you are engaging in active listening- (Be spe (1).docx1- How can you assess if you are engaging in active listening- (Be spe (1).docx
1- How can you assess if you are engaging in active listening- (Be spe (1).docx
rjessie
 
1)Describe the structural differences that make the chemical propertie.docx
1)Describe the structural differences that make the chemical propertie.docx1)Describe the structural differences that make the chemical propertie.docx
1)Describe the structural differences that make the chemical propertie.docx
rjessie
 

More from rjessie (20)

6- An airplane flies 450 km from Raleigh to Washington DC at 500 km-hr.docx
6- An airplane flies 450 km from Raleigh to Washington DC at 500 km-hr.docx6- An airplane flies 450 km from Raleigh to Washington DC at 500 km-hr.docx
6- An airplane flies 450 km from Raleigh to Washington DC at 500 km-hr.docx
 
6- A 25-kg ball with a radius of 10 cm is submerged held halfway down.docx
6- A 25-kg ball with a radius of 10 cm is submerged held halfway down.docx6- A 25-kg ball with a radius of 10 cm is submerged held halfway down.docx
6- A 25-kg ball with a radius of 10 cm is submerged held halfway down.docx
 
7- Write a mass action expression for the reaction between marble (CaC.docx
7- Write a mass action expression for the reaction between marble (CaC.docx7- Write a mass action expression for the reaction between marble (CaC.docx
7- Write a mass action expression for the reaction between marble (CaC.docx
 
7- Flow and stock variables Identify whether each of the following is (1).docx
7- Flow and stock variables Identify whether each of the following is (1).docx7- Flow and stock variables Identify whether each of the following is (1).docx
7- Flow and stock variables Identify whether each of the following is (1).docx
 
7- Heat is (a) a fluid called caloric- (b) a measure of the average ki.docx
7- Heat is (a) a fluid called caloric- (b) a measure of the average ki.docx7- Heat is (a) a fluid called caloric- (b) a measure of the average ki.docx
7- Heat is (a) a fluid called caloric- (b) a measure of the average ki.docx
 
7- Flow and stock variables Identify whether each of the following is.docx
7- Flow and stock variables Identify whether each of the following is.docx7- Flow and stock variables Identify whether each of the following is.docx
7- Flow and stock variables Identify whether each of the following is.docx
 
1)- The total number of ions present in iron (II) carbonate is -- 2)-.docx
1)- The total number of ions present in iron (II) carbonate is --  2)-.docx1)- The total number of ions present in iron (II) carbonate is --  2)-.docx
1)- The total number of ions present in iron (II) carbonate is -- 2)-.docx
 
1) Which of the following can behave as Bronsted-Lowry bases in aqueou.docx
1) Which of the following can behave as Bronsted-Lowry bases in aqueou.docx1) Which of the following can behave as Bronsted-Lowry bases in aqueou.docx
1) Which of the following can behave as Bronsted-Lowry bases in aqueou.docx
 
1) The rodent population in a city is currently estimated at 30-000- I.docx
1) The rodent population in a city is currently estimated at 30-000- I.docx1) The rodent population in a city is currently estimated at 30-000- I.docx
1) The rodent population in a city is currently estimated at 30-000- I.docx
 
1) How is the current ratio calculated- 2) How does a classified balan.docx
1) How is the current ratio calculated- 2) How does a classified balan.docx1) How is the current ratio calculated- 2) How does a classified balan.docx
1) How is the current ratio calculated- 2) How does a classified balan.docx
 
1) describe the conditions neccesary for a lunar eclipse to occur- and.docx
1) describe the conditions neccesary for a lunar eclipse to occur- and.docx1) describe the conditions neccesary for a lunar eclipse to occur- and.docx
1) describe the conditions neccesary for a lunar eclipse to occur- and.docx
 
1) compare and contrast the properties of the terrestrial planets and.docx
1) compare and contrast the properties of the terrestrial planets and.docx1) compare and contrast the properties of the terrestrial planets and.docx
1) compare and contrast the properties of the terrestrial planets and.docx
 
1- Lithium vapor is produced by heating lithium to its boiling point o.docx
1- Lithium vapor is produced by heating lithium to its boiling point o.docx1- Lithium vapor is produced by heating lithium to its boiling point o.docx
1- Lithium vapor is produced by heating lithium to its boiling point o.docx
 
1- On November 28- 2013- Elliott Company purchased 10-000 shares of Fe.docx
1- On November 28- 2013- Elliott Company purchased 10-000 shares of Fe.docx1- On November 28- 2013- Elliott Company purchased 10-000 shares of Fe.docx
1- On November 28- 2013- Elliott Company purchased 10-000 shares of Fe.docx
 
1) Bit-level transmission (or reception) is at the __- 2) Buffering at.docx
1) Bit-level transmission (or reception) is at the __- 2) Buffering at.docx1) Bit-level transmission (or reception) is at the __- 2) Buffering at.docx
1) Bit-level transmission (or reception) is at the __- 2) Buffering at.docx
 
1- If S is a finite set and f is a 1-1 mapping of S into itself- show.docx
1- If S is a finite set and f is a 1-1 mapping of S into itself- show.docx1- If S is a finite set and f is a 1-1 mapping of S into itself- show.docx
1- If S is a finite set and f is a 1-1 mapping of S into itself- show.docx
 
1- how did the paleolithic and neolithic ages differ and how did the n.docx
1- how did the paleolithic and neolithic ages differ and how did the n.docx1- how did the paleolithic and neolithic ages differ and how did the n.docx
1- how did the paleolithic and neolithic ages differ and how did the n.docx
 
1- How can you assess if you are engaging in active listening- (Be spe.docx
1- How can you assess if you are engaging in active listening- (Be spe.docx1- How can you assess if you are engaging in active listening- (Be spe.docx
1- How can you assess if you are engaging in active listening- (Be spe.docx
 
1- How can you assess if you are engaging in active listening- (Be spe (1).docx
1- How can you assess if you are engaging in active listening- (Be spe (1).docx1- How can you assess if you are engaging in active listening- (Be spe (1).docx
1- How can you assess if you are engaging in active listening- (Be spe (1).docx
 
1)Describe the structural differences that make the chemical propertie.docx
1)Describe the structural differences that make the chemical propertie.docx1)Describe the structural differences that make the chemical propertie.docx
1)Describe the structural differences that make the chemical propertie.docx
 

Recently uploaded

Model Attribute Check Company Auto Property
Model Attribute  Check Company Auto PropertyModel Attribute  Check Company Auto Property
Model Attribute Check Company Auto Property
Celine George
 
TESDA TM1 REVIEWER FOR NATIONAL ASSESSMENT WRITTEN AND ORAL QUESTIONS WITH A...
TESDA TM1 REVIEWER  FOR NATIONAL ASSESSMENT WRITTEN AND ORAL QUESTIONS WITH A...TESDA TM1 REVIEWER  FOR NATIONAL ASSESSMENT WRITTEN AND ORAL QUESTIONS WITH A...
TESDA TM1 REVIEWER FOR NATIONAL ASSESSMENT WRITTEN AND ORAL QUESTIONS WITH A...
EugeneSaldivar
 
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...
Dr. Vinod Kumar Kanvaria
 
The Challenger.pdf DNHS Official Publication
The Challenger.pdf DNHS Official PublicationThe Challenger.pdf DNHS Official Publication
The Challenger.pdf DNHS Official Publication
Delapenabediema
 
Francesca Gottschalk - How can education support child empowerment.pptx
Francesca Gottschalk - How can education support child empowerment.pptxFrancesca Gottschalk - How can education support child empowerment.pptx
Francesca Gottschalk - How can education support child empowerment.pptx
EduSkills OECD
 
Thesis Statement for students diagnonsed withADHD.ppt
Thesis Statement for students diagnonsed withADHD.pptThesis Statement for students diagnonsed withADHD.ppt
Thesis Statement for students diagnonsed withADHD.ppt
EverAndrsGuerraGuerr
 
Multithreading_in_C++ - std::thread, race condition
Multithreading_in_C++ - std::thread, race conditionMultithreading_in_C++ - std::thread, race condition
Multithreading_in_C++ - std::thread, race condition
Mohammed Sikander
 
The Accursed House by Émile Gaboriau.pptx
The Accursed House by Émile Gaboriau.pptxThe Accursed House by Émile Gaboriau.pptx
The Accursed House by Émile Gaboriau.pptx
DhatriParmar
 
Azure Interview Questions and Answers PDF By ScholarHat
Azure Interview Questions and Answers PDF By ScholarHatAzure Interview Questions and Answers PDF By ScholarHat
Azure Interview Questions and Answers PDF By ScholarHat
Scholarhat
 
Executive Directors Chat Leveraging AI for Diversity, Equity, and Inclusion
Executive Directors Chat  Leveraging AI for Diversity, Equity, and InclusionExecutive Directors Chat  Leveraging AI for Diversity, Equity, and Inclusion
Executive Directors Chat Leveraging AI for Diversity, Equity, and Inclusion
TechSoup
 
Acetabularia Information For Class 9 .docx
Acetabularia Information For Class 9  .docxAcetabularia Information For Class 9  .docx
Acetabularia Information For Class 9 .docx
vaibhavrinwa19
 
Biological Screening of Herbal Drugs in detailed.
Biological Screening of Herbal Drugs in detailed.Biological Screening of Herbal Drugs in detailed.
Biological Screening of Herbal Drugs in detailed.
Ashokrao Mane college of Pharmacy Peth-Vadgaon
 
special B.ed 2nd year old paper_20240531.pdf
special B.ed 2nd year old paper_20240531.pdfspecial B.ed 2nd year old paper_20240531.pdf
special B.ed 2nd year old paper_20240531.pdf
Special education needs
 
Chapter 3 - Islamic Banking Products and Services.pptx
Chapter 3 - Islamic Banking Products and Services.pptxChapter 3 - Islamic Banking Products and Services.pptx
Chapter 3 - Islamic Banking Products and Services.pptx
Mohd Adib Abd Muin, Senior Lecturer at Universiti Utara Malaysia
 
1.4 modern child centered education - mahatma gandhi-2.pptx
1.4 modern child centered education - mahatma gandhi-2.pptx1.4 modern child centered education - mahatma gandhi-2.pptx
1.4 modern child centered education - mahatma gandhi-2.pptx
JosvitaDsouza2
 
Lapbook sobre os Regimes Totalitários.pdf
Lapbook sobre os Regimes Totalitários.pdfLapbook sobre os Regimes Totalitários.pdf
Lapbook sobre os Regimes Totalitários.pdf
Jean Carlos Nunes Paixão
 
The approach at University of Liverpool.pptx
The approach at University of Liverpool.pptxThe approach at University of Liverpool.pptx
The approach at University of Liverpool.pptx
Jisc
 
Unit 8 - Information and Communication Technology (Paper I).pdf
Unit 8 - Information and Communication Technology (Paper I).pdfUnit 8 - Information and Communication Technology (Paper I).pdf
Unit 8 - Information and Communication Technology (Paper I).pdf
Thiyagu K
 
The Diamond Necklace by Guy De Maupassant.pptx
The Diamond Necklace by Guy De Maupassant.pptxThe Diamond Necklace by Guy De Maupassant.pptx
The Diamond Necklace by Guy De Maupassant.pptx
DhatriParmar
 
Chapter 4 - Islamic Financial Institutions in Malaysia.pptx
Chapter 4 - Islamic Financial Institutions in Malaysia.pptxChapter 4 - Islamic Financial Institutions in Malaysia.pptx
Chapter 4 - Islamic Financial Institutions in Malaysia.pptx
Mohd Adib Abd Muin, Senior Lecturer at Universiti Utara Malaysia
 

Recently uploaded (20)

Model Attribute Check Company Auto Property
Model Attribute  Check Company Auto PropertyModel Attribute  Check Company Auto Property
Model Attribute Check Company Auto Property
 
TESDA TM1 REVIEWER FOR NATIONAL ASSESSMENT WRITTEN AND ORAL QUESTIONS WITH A...
TESDA TM1 REVIEWER  FOR NATIONAL ASSESSMENT WRITTEN AND ORAL QUESTIONS WITH A...TESDA TM1 REVIEWER  FOR NATIONAL ASSESSMENT WRITTEN AND ORAL QUESTIONS WITH A...
TESDA TM1 REVIEWER FOR NATIONAL ASSESSMENT WRITTEN AND ORAL QUESTIONS WITH A...
 
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...
 
The Challenger.pdf DNHS Official Publication
The Challenger.pdf DNHS Official PublicationThe Challenger.pdf DNHS Official Publication
The Challenger.pdf DNHS Official Publication
 
Francesca Gottschalk - How can education support child empowerment.pptx
Francesca Gottschalk - How can education support child empowerment.pptxFrancesca Gottschalk - How can education support child empowerment.pptx
Francesca Gottschalk - How can education support child empowerment.pptx
 
Thesis Statement for students diagnonsed withADHD.ppt
Thesis Statement for students diagnonsed withADHD.pptThesis Statement for students diagnonsed withADHD.ppt
Thesis Statement for students diagnonsed withADHD.ppt
 
Multithreading_in_C++ - std::thread, race condition
Multithreading_in_C++ - std::thread, race conditionMultithreading_in_C++ - std::thread, race condition
Multithreading_in_C++ - std::thread, race condition
 
The Accursed House by Émile Gaboriau.pptx
The Accursed House by Émile Gaboriau.pptxThe Accursed House by Émile Gaboriau.pptx
The Accursed House by Émile Gaboriau.pptx
 
Azure Interview Questions and Answers PDF By ScholarHat
Azure Interview Questions and Answers PDF By ScholarHatAzure Interview Questions and Answers PDF By ScholarHat
Azure Interview Questions and Answers PDF By ScholarHat
 
Executive Directors Chat Leveraging AI for Diversity, Equity, and Inclusion
Executive Directors Chat  Leveraging AI for Diversity, Equity, and InclusionExecutive Directors Chat  Leveraging AI for Diversity, Equity, and Inclusion
Executive Directors Chat Leveraging AI for Diversity, Equity, and Inclusion
 
Acetabularia Information For Class 9 .docx
Acetabularia Information For Class 9  .docxAcetabularia Information For Class 9  .docx
Acetabularia Information For Class 9 .docx
 
Biological Screening of Herbal Drugs in detailed.
Biological Screening of Herbal Drugs in detailed.Biological Screening of Herbal Drugs in detailed.
Biological Screening of Herbal Drugs in detailed.
 
special B.ed 2nd year old paper_20240531.pdf
special B.ed 2nd year old paper_20240531.pdfspecial B.ed 2nd year old paper_20240531.pdf
special B.ed 2nd year old paper_20240531.pdf
 
Chapter 3 - Islamic Banking Products and Services.pptx
Chapter 3 - Islamic Banking Products and Services.pptxChapter 3 - Islamic Banking Products and Services.pptx
Chapter 3 - Islamic Banking Products and Services.pptx
 
1.4 modern child centered education - mahatma gandhi-2.pptx
1.4 modern child centered education - mahatma gandhi-2.pptx1.4 modern child centered education - mahatma gandhi-2.pptx
1.4 modern child centered education - mahatma gandhi-2.pptx
 
Lapbook sobre os Regimes Totalitários.pdf
Lapbook sobre os Regimes Totalitários.pdfLapbook sobre os Regimes Totalitários.pdf
Lapbook sobre os Regimes Totalitários.pdf
 
The approach at University of Liverpool.pptx
The approach at University of Liverpool.pptxThe approach at University of Liverpool.pptx
The approach at University of Liverpool.pptx
 
Unit 8 - Information and Communication Technology (Paper I).pdf
Unit 8 - Information and Communication Technology (Paper I).pdfUnit 8 - Information and Communication Technology (Paper I).pdf
Unit 8 - Information and Communication Technology (Paper I).pdf
 
The Diamond Necklace by Guy De Maupassant.pptx
The Diamond Necklace by Guy De Maupassant.pptxThe Diamond Necklace by Guy De Maupassant.pptx
The Diamond Necklace by Guy De Maupassant.pptx
 
Chapter 4 - Islamic Financial Institutions in Malaysia.pptx
Chapter 4 - Islamic Financial Institutions in Malaysia.pptxChapter 4 - Islamic Financial Institutions in Malaysia.pptx
Chapter 4 - Islamic Financial Institutions in Malaysia.pptx
 

73- On January 1- 2010- Lynn Company borrows $2-000-000 from National.docx

  • 1. 73. On January 1, 2010, Lynn Company borrows $2,000,000 from National Bank at 11% annual interest. In addition, Lynn is required to keep a compensatory balance of $200,000 on deposit at National Bank which will earn interest at 5%. The effective interest that Lynn pays on its $2,000,000 loan is a.  10.0%. b.  11.0%. c.  11.5%. d.  11.6%. Solution Interest paid on $1.8 million = $198,000 Interest paid on $200,000 savings = $12,000 [$200,000×(11%-5%)] Total interest paid = $210,000 Net funds received for utilisation = $1.8 million Effective interest rate = 11.6% [$210,000÷$1,800,000] Correct option is (d)