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Consolidated Industries borrows at prime plus 1.5% on its line of credit. The line requires a 15% compensating balance. If prime rate is 9%, what

Consolidated Industries borrows at prime plus 1.5% on its line of credit. The line requires a 15% compensating balance. If prime rate is 9%, what is the nominal APR of the line of credit?

a. 9.0% b. 10.6% c. 6% d. 12.4%

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