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Assume that a firm has a $1,000,000 line of credit at an 8.66 percent rate of interest that requires a 18.4 percent compensating balance. If

Assume that a firm has a $1,000,000 line of credit at an 8.66 percent rate of interest that requires a 18.4 percent compensating balance. If the firm borrowed $223,000 for 1 year, calculate annual effective rate of interest.

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