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Randall Corporation plans to borrow $240,000 for one year at 17 percent from the Waco State...

Randall Corporation plans to borrow $240,000 for one year at 17 percent from the Waco State Bank. There is a 24 percent compensating balance requirement. Randall Corporation keeps minimum transaction balances of $20,000 in the normal course of business. This idle cash counts toward meeting the compensating balance requirement.  

What is the effective rate of interest?

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