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Alice Company borrows from a bank a certain loan at a stated discount rate of 12 percent per annum The bank requires 10 percent of loan as compensating balance in its new checking account The loan

Alice Company borrows from a bank a certain loan at a stated discount rate of 12 percent per annum. The bank requires 10 percent of loan as compensating balance in its new checking account. The loan is payable at the end of 6 months. The effective interest rate if this loan is
A. 28.21%    C. 14.29%
B. 27.27%    D. 15.38% 

Jun 20 2021 View more View Less

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