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Your company has agreed to a $330 million fixed-commitment line of credit. The loan agreement calls for your company to pay 1.40 percent per quarter

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Your company has agreed to a $330 million fixed-commitment line of credit. The loan agreement calls for your company to pay 1.40 percent per quarter on any funds borrowed and maintain a 5 percent compensating balance on any funds borrowed at zero percent interest. What is the effective annual interest rate on this line of credit? Multiple Choice 4,90% 5.08% 6.02% 5.87%

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