Question: idaho mining inc borrows at a prime plus 1.5% on its line of credit. the line requires a 15% compensating balance. If the prime rate

idaho mining inc borrows at a prime plus 1.5% on its line of credit. the line requires a 15% compensating balance. If the prime rate is 9%, what is the nominal APR of the line of credit?

A. 9.0%. B. 6.0%. C. 10.6% D. 12.4%

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