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Alpha Corp. needs to take out a $600,000 loan from Payday Bank for the month of August. They are charged a rate of 15% APR

Alpha Corp. needs to take out a $600,000 loan from Payday Bank for the month of August. They are charged a rate of 15% APR and a required to maintain a 10% compensating balance. What is the EAR of this loan to Alpha?

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