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OU CAN Holland Construction Co. has an outstanding 180 day bank loan of $400,000 at an annual interest rate of 9.5%. The company is required

OU CAN Holland Construction Co. has an outstanding 180 day bank loan of $400,000 at an annual interest rate of 9.5%. The company is required to maintain a 15% compensating balance in its chequing account. What is the annual interest cost on the loan? Assume the company would not normally maintain this average amount Multiple Choice 95% 1500% 1118

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