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Company F acquires short-term financing from 90-day notes payable with a principal of $100,000 and a nominal annual interest rate of 3%. It will roll

Company F acquires short-term financing from 90-day notes payable with a principal of $100,000 and a nominal annual interest rate of 3%. It will roll these notes over (re-issue) new 90-day notes payable) over the course of the year. Calculate the effective interest rate for Company Fs short-term capital.

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