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Carrie company is borrowing $250,000 for one year at 13.5% from second interstate bank. The bank requires a 20% compensating balance. The principle refers to

Carrie company is borrowing $250,000 for one year at 13.5% from second interstate bank. The bank requires a 20% compensating balance. The principle refers to funds the firm can utilize effectively. What is the effective rate of interest? What would the effective rate be if Carrie were required to make equal monthly payments to retire the loan

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