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40 A firm borrows $45,000 for 1 year at 7% interest. The firm pays the interest in advance. What is the effective annual rate of

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A firm borrows $45,000 for 1 year at 7% interest. The firm pays the interest in advance. What is the effective annual rate of the loan? 6.5% 7.0% 9.3% 7.5%

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