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Maggie's Bistro Is Borrowing $375,000

Question 72

Multiple Choice

Maggie's Bistro is borrowing $375,000. The loan requires an 8 percent compensating balance, and the effective interest rate on the loan is 10.326 percent. What is the stated APR on this loan? Round your final percentage answer to 1 decimal place. Do not round your intermediate calculations.


A) 10.0%
B) 9.5%
C) 7.4%
D) 8.5%

Correct Answer:

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