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Galoraz Bhd has a line of credit of RM325,000 with an interest rate of 1.85 percent per quarter. Their short-term investments earning is 0.48 percent
Galoraz Bhd has a line of credit of RM325,000 with an interest rate of 1.85 percent per quarter. Their short-term investments earning is 0.48 percent per quarter. What is the effective annual interest rate (EAR) on this arrangement if the line of credit goes unused all year? Assume any funds borrowed or invested use compound interest.
Select one:
A. 2.14%
B. 1.93%
C. 7.61%
D. 10.38%
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