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Effective annual rateA financial institution made a $3,000,000, 1-year discount loan at 11% interest, requiring a compensating balance equal to 9% of the face value

Effective annual rateA financial institution made a $3,000,000, 1-year discount loan at 11% interest, requiring a compensating balance equal to 9% of the face value of the loan. Determine the effective annual rate associated with this loan.(Note:Assume that the firm currently maintains $0 on deposit in the financial institution.)

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