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Gifts Galore Inc. borrowed $1.5 million from National City Bank. The loan was made at an annual interest rate quoted at 9 percent a year

Gifts Galore Inc. borrowed $1.5 million from National City Bank. The loan was made at an annual interest rate quoted at 9 percent a year for 3 months. A 20% compensating balance was required, and the bank required discount interest. What would be the effective annual rate of the loan? a. 9.00% b. 10.19% c. 12.09% d. 13.84%

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