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    Practical Financial Management Study Set 1
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    Exam 16: The Management of Working Capital
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    What Is the Effective Interest Rate on a 12% Loan
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What Is the Effective Interest Rate on a 12% Loan

Question 137

Question 137

Multiple Choice

What is the effective interest rate on a 12% loan that requires a 10 percent minimum compensating balance?


A) 13.33 percent
B) 14.44 percent
C) 15.50 percent
D) 16.00 percent

Correct Answer:

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