What is the effective interest rate on the loan

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Reference no: EM13924567

Morgan Contractors borrowed $1.50 million at an APR of 4.0 percent. The loan called for a compensating balance of 5 percent. What is the effective interest rate on the loan?

Reference no: EM13924567

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What is the effective interest rate on the loan : Morgan Contractors borrowed $1.50 million at an APR of 4.0 percent. The loan called for a compensating balance of 5 percent. What is the effective interest rate on the loan?

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