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You plan to borrow $10,000 from your bank, which offers to lend you the money at an 11 percent nominal, or stated, rate on a

You plan to borrow $10,000 from your bank, which offers to lend you the money at an 11 percent nominal, or stated, rate on a 1-year loan. What is the effective interest rate if the loan is a discount loan with a 15 percent compensating balance?

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