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4. On anuary 2010, Tinoc Company borrows P2,000,000 from National Bank at 12% annual interest. In addition, Tinoc is required to keep a compensatory balance

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4. On anuary 2010, Tinoc Company borrows P2,000,000 from National Bank at 12% annual interest. In addition, Tinoc is required to keep a compensatory balance of P200,000 on deposit at National Bank which will earn interest at 4. The effective interest that Tinoc pays on its P2,000,000 loan is a. 10.0% C. 12.0% 11.6% d. 12.8%

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