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Cheap Money Bank offers your firm a discount interest loan with an interest rate of 9.85 percent for up to $25 million, and in addition
Cheap Money Bank offers your firm a discount interest loan with an interest rate of 9.85 percent for up to $25 million, and in addition requires you to maintain a 4.5 percent compensating balance against the face amount borrowed. What is the effective annual interest rate on this lending arrangement? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16
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