Assume Slippy Slides borrowed $17 million from West Side Bank and agreed to (a) pay an interest

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Assume Slippy Slides borrowed $17 million from West Side Bank and agreed to (a) pay an interest rate of 7.0% and (b) maintain a compensating balance amount equal to 5.1% of the loan. Determine Slippy Slides’ actual effective interest rate on this loan.

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Financial accounting

ISBN: 978-0132751124

9th edition

Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom

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