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To pay its supplier, Tokyo Corporation requires P300,000. The bank of Tokyo Corporation offers a 210-day loan with a simple interest rate of 11 percent
To pay its supplier, Tokyo Corporation requires P300,000. The bank of Tokyo Corporation offers a 210-day loan with a simple interest rate of 11 percent and a compensating balance requirement of 20 percent. Given that there are 360 days in a year and Tokyo Corporation has no funds at the lending bank, what is the annual percentage rate (APR) of the loan?
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