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Effective interest rate: BML Ltd. borrows R50000 from ABC Bank under a line of credit agreement and at an APR of 8.5% per annum. If

Effective interest rate: BML Ltd. borrows R50000 from ABC Bank under a line of credit agreement and at an APR of 8.5% per annum. If ABC Bank requires a compensating balance of 8%, what is the effective interest rate on this line of credit for BML Ltd? 9.24% 8.50% 8.00% 16.50%

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