What is the effective annual interest rate on this lending


DeAngelo bank offers your firm a discount interest loan with an interest rate of 6 percent for up to $19 million, and in addition requires you to maintain a compensating balance of 3 percent against the amount borrowed. What is the effective annual interest rate on this lending arrangement? (Do not round intermediate calculations. Answer should be a percent rounded to 2 decimal places.)

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Finance Basics: What is the effective annual interest rate on this lending
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