Crawley, inc

Subject:BusinessPrice:2.87 Bought7

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Crawley, inc. has a line of credit with hnc bank that allows the company to borrow up to $800,000 at an interest rate of 12 percent. However they must keep a company's sting balance of 18 percent of any amount borrowed on deposit at the bank. They do not normally keep a cash balance account with hnc bank. What is the effective annual cost of credit. A. 15.47. B. 12.4. C. 14.63. D. 12.83