Maxim Air Filters Inc. plans to borrow $300,000 for one year. Northeast National Bank will lend the

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Maxim Air Filters Inc. plans to borrow $300,000 for one year. Northeast National Bank will lend the money at 10 percent interest and requires a compensating balance of 20 percent. What is the effective rate of interest?

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Foundations of Financial Management

ISBN: 978-1259194078

15th edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen

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Question Posted: Oct 14, 2014 07:24 AM

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Maxim Air Filters Inc. plans to borrow $300,000 for one year. Northeast National Bank will lend the

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Foundations of Financial Management

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