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Idaho Mining,Inc Borrows at Prime Plus 1

Question 6

Multiple Choice

Idaho Mining,Inc borrows at prime plus 1.5% on its line of credit.The line requires a 15% compensating balance.If prime rate is 9%,what is the nominal APR of the line of credit?


A) 9.0%
B) 6.0%
C) 10.6%
D) 12.4%

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