A corporation borrows 2 million from the bank at a 6
A corporation borrows $2 million from the bank at a 6 percent prime rate. If the bank requires the company to hold 15 percent of the amount of the loan on deposit as a compensation balance, what is the effective rate of interest on the loan?
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a corporation borrows 2 million from the bank at a 6 percent prime rate if the bank requires the company to hold 15
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