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On January 1, 2020, Bird Company borrows $2600000 from National Bank at 13% annual interest. In addition, Oriole is required to keep a compensatory balance

On January 1, 2020, Bird Company borrows $2600000 from National Bank at 13% annual interest. In addition, Oriole is required to keep a compensatory balance of $260000 on deposit at National Bank which will earn interest at 6%. The effective interest that Oriole pays on its $2600000 loan is

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