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Jackson insutries has borrowed $125,000 under a line of credit agreement. While the company normally maintains a checcking acount balancce of $15,000 in the lending bank, this ccredit line requires a 20% ompensating balance. The stated interest rate on the borrowed funds is 10%. What is the effective annual rate of intestters on the line of credit?

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  • Reference No.:- M941351

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