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Tucker Drilling Corp. plans to borrow $200,000. Northern Dominion Bank will lend the money at onehalf of a percentage point over the prime rate of

Tucker Drilling Corp. plans to borrow $200,000. Northern Dominion Bank will lend the money at onehalf of a percentage point over the prime rate of 8 percent and requires an administration fee of 2 percent. There is a 20 percent compensating balance requirement.

What is the annual rate of interest? (Round the final answer to 2 decimal places.)

Annual rate of interest %

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