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If Analog computers can borrow at 9.2% annually for three years, what is the effective rate of interest on a $895,000 loan where a 11%

If Analog computers can borrow at 9.2% annually for three years, what is the effective rate of interest on a $895,000 loan where a 11% compensating balance is required? (Use 360 days in a year. Round your answer to 2 decimal places.)

Multiple Choice

7.64%
15.64%
10.34%
13.09%

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