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    Calculating the effective interest rate

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    The Apex supplies corporation needs to acquire 100 million in funds to expand their facilities. The bank has offered them a discounted loan at 10% and a compensating balance of 6% . What is the effective interest rate on this loan?

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    https://brainmass.com/business/interest-rates/calculating-the-effective-interest-rate-461368

    Solution Summary

    Solution describes the steps to calculate the effective interest rate in the given case.

    $2.19

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