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Sammy Siding Inc. is planning to borrow $12,000 from the bank for new milling machines. The bank offers the choice of a 12 percent discount

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Sammy Siding Inc. is planning to borrow $12,000 from the bank for new milling machines. The bank offers the choice of a 12 percent discount interest loan or a 10.19 percent add-on, one-year installment loan, payable in 4 equal quarterly payments. What is the effective rate of interest on the 12 percent discounted loan? 10.7% 12.0% 12.5% 13.6% 14.1%

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