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Luther Industries is offered a $1 million loan for four months at an APR of 9%. If Luther's bank requires that the firm maintain a

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Luther Industries is offered a $1 million loan for four months at an APR of 9%. If Luther's bank requires that the firm maintain a compensating balance equal to 10% of the loan amount in a non- interest-earning account, then the effective annual rate EAR for this loan is closest to O 71.5% 10.3% O 12.6% O 14.4%

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