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You are offered a 4-month loan of $50,000 with an APR of 2.5%. However, the loan has a compensating balance requirement equal to 1.5%. What

You are offered a 4-month loan of $50,000 with an APR of 2.5%. However, the loan has a compensating balance requirement equal to 1.5%. What is the EAR on the loan?

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