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You are quoted 15% for a pre-paid interest loan that also requires a 10% compensating balance for a 900,000 loan. What is the effective rate

You are quoted 15% for a pre-paid interest loan that also requires a 10% compensating balance for a 900,000 loan. What is the effective rate of your loan?

a. 15%

b. 17.6%

c. 19%

d. 20%

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