Question: On January 1 , 2 0 2 5 , Crane Company borrows $ 3 0 8 0 0 0 0 from National Bank at 1

On January 1,2025, Crane Company borrows $3080000 from National Bank at 11% annual interest. In addition, Crane is required to keep a compensating balance of $350000 on deposit at National Bank which will earn interest at 5%. The effective interest that Crane pays on its $3080000loan is 11.0%.11.4%.11.8%.11.6%.

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