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The Wildhorse Bank requires borrowers to keep an 11 percent compensating balance. Gorman Jewels borrows $370,000 at a 4 percent stated APR. What is the

The Wildhorse Bank requires borrowers to keep an 11 percent compensating balance. Gorman Jewels borrows $370,000 at a 4 percent stated APR. What is the effective interest rate on the loan? (Round answer to 2 decimal places, e.g. 12.25%.)

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