Apart from the number of cotyledons, other identifying characteristics are as follows: 1  the number of flower parts-monocot flowers are trimerous (in multiples of three). 2  the number of pores in pollen-monocots have one.part from the number of cotyledons, other identifying characteristics are as follows: 1  the number of flower parts-monocot flowers are trimerous (in multiples of three). 2  the number of pores in pollen-monocots have one.
Once the LOC is in place, the clothing store needs to manage cash flow so the business can minimize the interest expense paid on the LOC borrowings. Assume, for example, the interest rate on the LOC is an annual rate of 6% and the store starts the month with a $20,000 cash balance. The store estimates sales for the month to be $50,000, and $40,000 in inventory needs to be purchased to meet customer demand.
If your total loan is for $100,000 and the compensatory balance is $5,000, your available balance is $95,000. 5. Divide the nominal interest due by the available principal to calculate the effective interest rate of your compensatory balance installment loan. Example: Assume the interest rate on a compensatory balance loan has an interest rate of 5 percent, a principal of $100,000, and a compensatory balance of $5,000. Effective interest rate = $5,000/($100,000 - $95,000) = $5,000/$95,000 = 0.0526 = 5.26 percent.