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The York Company has arranged a line of credit that allows it to borrow up to $43 milion at any time. The interest rate
The York Company has arranged a line of credit that allows it to borrow up to $43 milion at any time. The interest rate is .619 percent per month. Additionally, the company must deposit 5 percent of the amount borrowed in a non-interest bearing account. The bank uses compound interest on its line-of-credit loans. What is the effective annual rate on this line of credit?
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Data Communications and Networking
Authors: Behrouz A. Forouzan
5th edition
73376221, 978-0073376226
