Multiple Choice
Koopman's Chickens, Inc. plans to borrow $275,000 from its bank for one year. The annual rate of interest is 9%, but a compensating balance of 20% is required. What is the effective rate of interest?
A) Less than 10%
B) More than 10% but less than 11.6%
C) More than 11.6% but less than 12%
D) More than 12%
Correct Answer:
Verified
Correct Answer:
Verified
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