A financial institution made a  $2,000,000 ​1-year discount loan at 11​% interest, requiring a compensating balance equal to 66​% of the face value of the loan. Determine the effective annual rate associated with this loan. ​(​Note: Assume that the firm currently maintains​ $0 on deposit in the financial​ institution.) The effective annual rate associated with the loan is ___ %. ​(Round to two decimal​ places.)

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Q: Crab State Bank has offered you a $1,500,000 5-year loan at an interest rate of 9.25 percent,…

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Q: National Company has a P25,0000 line of credit at a 9% interest rate. The loan agreement requires a…

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