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susann is considering borrowing $10,000 for one year at 8% interest. What is the effective rate of interest if the loan is discounted and requires

susann is considering borrowing $10,000 for one year at 8% interest. What is the effective rate of interest if the loan is discounted and requires 10% compensating balance?

a. 8.70%

b.9.76%

c. 10.39%

d. None of the above

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