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What is the effective rate if the company borrows $200,000 on a 6 percent discounted loan with a 10 percent compensating balance for one year?
What is the effective rate if the company borrows $200,000 on a 6 percent discounted loan with a 10 percent compensating balance for one year?
a. 7.14 percent
b. 6.00 percent
c. 6.78 percent
d. 6.44 percent
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