Come and go bank offers your firm a discount interest loan


Come and Go Bank offers your firm a discount interest loan at 8 percent for up to $15 million, and in addition requires you to maintain a 4 percent compensating balance against the amount borrowed.

What is the effective annual interest rate on this lending arrangement? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

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Financial Management: Come and go bank offers your firm a discount interest loan
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