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Penn Inc. needs to borrow $250,000 for the 180 days. The company has a line of credit with a bank that allows the company

Penn Inc. needs to borrow $250,000 for the 180 days. The company has a line of credit with a bank that allows the company to borrow funds with an 10% interest rate subject to a 20% of compensating balance. What will be annual cost of this financing (APR) if the interest is also discounted?

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