Discuss the effective interest rate on the loan
Problem:
The Apex supplies corporation needs to acquire 100 million in funds to expand their facilities. The bank has offered them a discounted loan at 10% and a compensating balance of 6% . What is the effective interest rate on this loan?
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The bank has offered them a discounted loan at 10% and a compensating balance of 6% . What is the effective interest rate on this loan?
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