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holland construction co. has an outstanding 180 day bank loan of $475,000 at an annual interest rate of 7.5%. the company is required to maintain

holland construction co. has an outstanding 180 day bank loan of $475,000 at an annual interest rate of 7.5%. the company is required to maintain a 15% compensating balance in its checking account. what is the effective interest rate on the loan? assume the company would not normally maintain this average amount.

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