What is the effective rate of interest

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1. If Analog computers can borrow at 9.6% for 3 years, what is the effective rate of interest on a $860,000 loan where a 19% compensating balance is required? (Use 360 days in a year. Round your answer to 2 decimal places.) 9.15% 11.85% 17.15% 14.60%

2. Analog Computers needs to borrow $895,000 from the Midland Bank. The bank requires a 13% compensating balance. How much money will Analog need to borrow in order to end up with $895,000 spendable cash? (Round your answer to the nearest dollar amount.) $1,011,350 $1,028,736 $1,673,650 $1,717,

Reference no: EM131875569

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