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Business, 26.09.2019 23:30 liv467

Rachel's has a $50,000 line of credit with uptown bank. the line of credit calls for an interest rate of 8 percent and a compensating balance of 4 percent. the compensating balance is based on the total amount borrowed and will be held in an interest-free account. what is the effective annual interest rate if the firm borrows $35,000 for one year?

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