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ROK-B borrowed (on average) $150,000 at a stated interest rate of 8% p.a. (per annum) for one yea...

ROK-B borrowed (on average) $150,000 at a stated interest rate of 8% p.a. (per annum) for one year under a revolving credit agreement that authorized and guaranteed the firm access to $200,000. The bank charged the firm a commitment fee of 2% on the unused portion. If the compensating balance required (for the borrowed fund) is 15%, the EAR for this loan is _______%.

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Line of credit allowed $200,000 $150,000 $1,000 $22,500 Amount borrowed (Credit utilized) Less: Commitment fees Less: Compens

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