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Bhupinder's Bakery has a one-year $300,000 line of credit at an interest rate of 6% (EAR). The loan has a loan origination fee of 1%.

Bhupinder's Bakery has a one-year $300,000 line of credit at an interest rate of 6% (EAR). The loan has a loan origination fee of 1%. What is the actual interest rate paid?

a. 7.14%

b. 6%

c. 7%

d. 7.07%

e. 6.7%

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