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FIN 510 Kenneth’s Arrows and Bows borrows $10,000 for one year at 8% interest.

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June 7th, 2024

Kenneth’s Arrows and Bows borrows $10,000 for one year at 8% interest. What is the effective rate of interest if the loan is discounted and requires a 10% compensating balance? Select one:A. 8.70%B. 9.76%C. 10.39%D. None of the above

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