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40. Metrobank offers one-year loans with a 9 percent stated or base rate, charges a 0 percent loan origination fee, imposes a no compensating balance
40. Metrobank offers one-year loans with a 9 percent stated or base rate, charges a 0 percent loan origination fee, imposes a no compensating balance requirement, and does not consider the reserve requirement at the Federal Reserve. The loans typically are repaid at maturity. If the risk premium for a given customer is 2.5 percent, what is the simple promised interest return on the loan
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