Multiple Choice
-The effective annual interest rate on a loan in which a company borrows $1,000,000 for one year at 8 percent and requires a compensating balance of 10 20 percent is:
A) 78.5%
B) 9.5%
C) 9.910%
D) 7.928%
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
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