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Grant Technologies Is Planning to Get a 210-Day $300,000 Simple

Question 36

Multiple Choice

Grant Technologies is planning to get a 210-day $300,000 simple interest loan from its bank with a quoted interest rate of 11 percent and a 20% compensating balance requirement. Assuming there are 360 days in a year and Grant currently holds no funds at the lending bank, what is the annual percentage rate (APR) of the loan? (Round your answer to two decimal places.)


A) 13.05%
B) 13.35%
C) 12.85%
D) 13.75%
E) 12.55%

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