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What is the effective interest rate on the loan

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Reference no: EM132930139

Problem 1: The Pharoah Bank requires borrowers to keep an 8 percent compensating balance. Gorman Jewels borrows $270,000 at a 4 percent stated APR. What is the effective interest rate on the loan? (Round answer to 2 decimal places, e.g. 12.25%.)

Reference no: EM132930139

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