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The treasurer of Brandon Blue Sox is seeking a $36,000 loan for 180 days from the Brandon Credit Union. The stated interest rate is 10
The treasurer of Brandon Blue Sox is seeking a $36,000 loan for 180 days from the Brandon Credit Union. The stated interest rate is 10 percent and there is a 15 percent compensating balance requirement. The treasurer always keeps a minimum of $3,100 in the firms chequing account. These funds could count toward meeting any compensating balance requirements.
What is the annual rate of interest on this loan?
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