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Joan decides to choose aline of credit from East Bank as the short-term credit for her cafe. East Bank currently provides the cafup to $2,0,000

Joan decides to choose aline of credit from East Bank as the short-term credit for her cafe. East Bank currently provides the cafup to $2,0,000 for one year with an interest rate of 0.01% per month for monthly repayment. A compensating balance of 8% of the loan amount in a non-interest bearing account is required by East Bank. Assess the effective lending rate underlying the line of credit for Joan.

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