Determine the effective annual interest rate on a given line

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Reference no: EM131518215

Question: Determine the effective annual interest rate on a $25,000 line of credit with an annual percentage rate of 8.75% compounded monthly. The bank requires that a 1.5% commitment fee be paid on the unused balance of the line of credit. The average daily balance is anticipated to be $10,000.

Reference no: EM131518215

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