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What is the effective rate of interest

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Reference no: EM131056678

Koopman's Chickens, Inc. plans to borrow $300,000 from its bank for one year. The rate of interest is 10 percent, but a compensating balance of 15 percent is required. What is the effective rate of interest?

Select one:

A. 10.11%

B. 11.76%

C. 13.33%

D. 14.12%

Reference no: EM131056678

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