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Randall corporation plans to borrow

28/04/2021 Client: asad8949eF Deadline: 2 Day

Randall Corporation plans to borrow $200,000 for one year at 8 percent from the Dominion Trust Company. There is a 20 percent compensating balance requirement. Randall keeps minimum transaction balances of$10,000 in the normal course of business. This idle cash counts toward meeting the compensating balance requirement. What is the annual rate of interest?

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