What is the effective cost of bank financing

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What is the effective cost of bank financing if the loan amount is $100,000, interest is discounted (advance), a 1% commitment fee is paid up front, and a 9% compensating balance is required? The stated interest rate is 8%. a. 8.00% b. 8.98% c. 10.98% d. 9.98%

Reference no: EM131520843

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