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Assume that a firm has a $1,000,000 line of credit at an 3.17 percent rate...

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Finance

Assume that a firm has a $1,000,000 line of credit at an 3.17 percent rate of interest that requires a 12.1 percent compensating balance. If the firm borrowed $421,000 for 1 year, calculate annual effective rate of interest.
Round the answer to two decimal places.

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