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Need help with this question. Thank you in advance! Forbes. just borrowed $2,000,000 from their bank at a stated rate of 8%.The terms of the

Need help with this question. Thank you in advance!

Forbes. just borrowed $2,000,000 from their bank at a stated rate of 8%.The terms of the loan required a 10% compensating balance and an upfront processing fee of 1% of the balance.The loan is due in nine months with no interest payments until maturity.Forbes has no other balances that could be used to offset the compensating balance.

What is the effective interest rate of this loan?

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