Compensating balance required
If Analog computers can borrow at 9.5% for 3 years, what is the effective rate of interest on a $800,000 loan where a 15% compensating balance is required?
A. 11.18%
B. 17.27%
C. 9.50%
D. none of these
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two steps that would be most effective in refining solutions to the problem and resolutions to the issues presented
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