Question: If Analog computers can borrow at 9.2% annually for three years, what is the effective rate of interest on a $865,000 loan where a 12%

If Analog computers can borrow at 9.2% annually for three years, what is the effective rate of interest on a $865,000 loan where a 12% compensating balance is required?

Note: Use 360 days in a year. Round your answer to 2 decimal places.

Multiple Choice

7.75%

15.75%

10.45%

13.20%

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