Come and go bank offers your firm a discount interest loan


Come and Go Bank offers your firm a discount interest loan with an interest rate of 10 percent for up to $19 million, and in addition requires you to maintain a 3 percent compensating balance against the face amount borrowed.

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

Effective annual rate             %

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