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NEW QUESTION: 1
If a firm borrows $500,000 at 10 percent and is required to maintain $50,000 as a minimum compensating
balance at the bank, what is the effective interest rate on the loan?
A. 11.1 percent.
B. 9.1 percent.
C. 11.0 percent.
D. 12.2 percent.
Answer: A
Explanation:
Choice "a" is correct. 11.1% effective interest rate on loan.

This question pertains to the computation of the effective rate of interest on a $500,000 note with a 10%
stated rate that requires a $50,000 compensating balance. The answer computes the effective rate at
1 1.1% by taking the ratio of the amount paid $50,000 to the funds available $450,000 ($500,000 $50,000).
Why would the $50,000 in interest payments not also be deducted in arriving at the effective rate? The
simple answer is that the note is not discounted by the interest. It is only subject to the compensating
balance. The borrower receives $500,000 in proceeds but must hold out $50,000 and pay back $550,000,
principal + interest, to the lender. At the conclusion of the loan, the compensating balance requirement is
removed.

NEW QUESTION: 2
Immediately after creating a volume, which workflow disables the Dynamic Capacity on a specific
volume?
A. Right-click on the volume and select "Disable ThinProvision".
B. Within system properties, uncheck the item "Dynamic Capacity".
C. Within volume properties, uncheck the option "Thin Provision".
D. Right-click on the desired volume and select "Preallocate Storage".
Answer: A

NEW QUESTION: 3









How many times was SPF alrogithm executed on R4 for Area 1?
A. 0
B. 1
C. 2
D. 3
E. 4
F. 5
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Answers vary, some answers will be 3. To find the answer, you can check the number of times the execcuted SPF algorithm ran via the "show ip ospf"command on R4:

In this case it was 3. Again, answers will vary.