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Cheap Money Bank offers your firm a discount interest loan at 8 percent for up to $21 million and, in addition, requires you to maintain

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Cheap Money Bank offers your firm a discount interest loan at 8 percent for up to $21 million and, in addition, requires you to maintain a 5 percent compensating balance against the amount borrowed. What is the effective annual Interest rate on this lending arrangement? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) 0.10% Effective annual interest rate

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