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M A borrower gets a $100 000 loan at 8% at a bank which requires the lender to keep a balance of 20%. If

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M A borrower gets a $100 000 loan at 8% at a bank which requires the lender to keep a balance of 20%. If all of this balance is a net increase in the account balance, which the borrower would normally maintain, what is the equivalent rate paid by the borrower? a. 7.20% b. 6.40% 10.00% d. 9.00% e. 8.00%

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