Answer:
the nominal annual percentage rate for the line of credit is 12.4%
Step-by-step explanation:
The computation of the nominal annual percentage rate is given below:
Nominal Annual percentage rate is
= (Prime rate + line of credit) ÷ (1 - compensation balance percentage)
= (9% + 1.50%) ÷ (1 - 15%)
= 10.50% ÷ 85%
= 12.4%
Hence, the nominal annual percentage rate for the line of credit is 12.4%
The same should be considered