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XYZ, In. borrowed S10,000 from National City Bank for three months. The loan was ade at a simple interest rate of 9 percent but required

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XYZ, In. borrowed S10,000 from National City Bank for three months. The loan was ade at a simple interest rate of 9 percent but required a compensating balance of 20 percent Find the effective annual interest rate for this loan. 10 ODOX.09-900 10000 X.2D 2000

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