Question: PLEASE SHOW ALL WORK & CALCULATIONS!!!! Assume Pediatric Partners borrows $75,000 from a bank at an annual interest rate of 10 percent. If the bank

PLEASE SHOW ALL WORK & CALCULATIONS!!!!

Assume Pediatric Partners borrows $75,000 from a bank at an annual interest rate of 10 percent. If the bank requires Pediatric Partners to maintain a compensating balance equal to 10 percent of the face amount of the loan, what is the effective interest rate on the loan? (Show all calculations for full credit.)

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