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Your firm has a line of credit with your.17 local bank for $50,000. The loan agreement calls for interest of 10% with a 8% compensating

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Your firm has a line of credit with your.17 local bank for $50,000. The loan agreement calls for interest of 10% with a 8% compensating balance requirement which is based on the total amount borrowed. What is the effective interest rate if you need $42,750 for one year to ?cover your operating expenses (2 ) 8.55% O 9.00% 10.52% O 10.87% O

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