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If anyone could help me with these, I would greatly appreciate it! Ill definitely give you a thumbs up if you get these correct. Thanks!

If anyone could help me with these, I would greatly appreciate it! Ill definitely give you a thumbs up if you get these correct. Thanks!

13. AIE Industries plans to purchase a new delivery truck for $250,000. The company has been quoted an annual rate of 6.5 percent with discount interest and a compensating balance of 2 percent. a. How much will AIE have to borrow? b. What is the effective rate on this loan?

c. If AIE can convince the bank to remove the compensating balance requirement, what is the effective rate?

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