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My Hope Company is negotiating for a 4-month discounted loan for 200,000 at 12% per annum. The negotiated loan requires a 20% compensating balance. What

My Hope Company is negotiating for a 4-month discounted loan for 200,000 at 12% per annum. The negotiated loan requires a 20% compensating balance. What is effective interest rate of the loan?

a. 15.79

b. 15.00

c. 17.65

d. 15.59

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