What is the compensating balance on this loan

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The Clarkson Designer Company wants to borrow $750,000. The bank will provide the loan at an APR of 6.546. Since the loan calls for a compensating balance, the effective interest rate is actually 9.039 percent. What is the compensating balance on this loan? (Round answer to 1 decimal place, e.g. 12.2%.)

Reference no: EM131445336

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What is the compensating balance on this loan : The Clarkson Designer Company wants to borrow $750,000. The bank will provide the loan at an APR of 6.546. Since the loan calls for a compensating balance, the effective interest rate is actually 9.039 percent. What is the compensating balance on thi..

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