The U.R. Bloom Corporation established a line of credit with a local bank. The maximum amount that can be borrowed under the terms of the agreement is $125,000 at a rate of 5%. A compensating balance averaging 10% of the loan is required. If the firm needs $100,000 for six months, what is the dollar cost of the loan and the annual percentage rate (APR)?

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The Answer of The U.R. Bloom Corporation established a line of credit with a local bank. The maximum amount that can be borrowed under the terms of the agreement is $125,000 at a rate of 5%. A compensating balance averaging 10% of the loan is required. If the firm needs $100,000 for six months, what is the dollar cost of the loan and the annual percentage rate (APR)?

The UR Bloom Corporation Established a Line of Credit with a a Local