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Vivid Corporation is growing at a fast pace and requires short term financing for the next 8 months to expand its operations.They are do not

Vivid Corporation is growing at a fast pace and requires short term financing for the next 8 months to expand its operations.They are do not know the exact amount required yet.Okanagan Bank will lend them money at prime +2%.Prime is currently 3%.Okanagan Bank requires a 15% compensating balance.Calculate the annual effective rate of interest.

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