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Your firm needs to borrow $500,000 for one year. Your banker offers the following four loan options. Which one will you choose? (i.e., which
Your firm needs to borrow $500,000 for one year. Your banker offers the following four loan options. Which one will you choose? (i.e., which offer has the lowest effective rate?) Select one: O O O a. 12.00% simple interest b. 11.75% discount interest c. 9.00% simple interest with a 20.00% compensating balance d. 9.05% discount interest with a 12% compensating balance
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