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Mint Bank sets a loan rate for a prospective borrower at 15% per annum. The bank charges a 10% loan origination fee. It also imposes
Mint Bank sets a loan rate for a prospective borrower at 15% per annum. The bank charges a 10% loan origination fee. It also imposes a 5% compensating balance requirement. Mint bank is required by the regulator to set aside reserves at a rate of 3% of deposits. The contractually promised return on the loan, per dollar lent is given by: Select one: a. Not enough information to answer this question. O b. 0.2627% O c. 10% O d. 13% e. 26.27%
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