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Fancy Footwear has a line of credit with your local bank for $140,000. The loan...

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Fancy Footwear has a line of credit with your local bank for $140,000. The loan agreement calls for interest of 9 percent with a 5 percent compensating balance requirement which is based on the total amount borrowed. What is the effective interest rate if you need $119,500 for one year to cover your operating expenses? 09.13 percent 9.00 percent O 8.55 percent 09.38 percent 09.47 percent

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