JBL wishes to cap its variable borrowing rate at 10.5%.To facilitate this,JBL's bank requires a premium of 0.3%.If the market reset interest rate is currently 9.6%,what is the rate of interest that JBL is paying to the bank?
A)9.9%
B)9.6%
C)10.5%
D)10.8%

Question

Quizplus · Accepted Answer

JBL is paying a rate of 9.9% to the bank, which is the sum of the market reset interest rate (9.6%) and the premium required by the bank (0.3%).

JBL Wishes to Cap Its Variable Borrowing Rate at 10