Holland Construction Co. has an outstanding 180-day bank loan of $404,000 at an annual interest rate of 9.5%. The company is required to maintain a 17% compensating balance in its checking account. What is the effective interest rate on the loan? Assume the company would not normally maintain this average amount. (Use 360 days in a year. Round your answer to 2 decimal places.)

A.13.45%

B.11.45%

C.10.45%

D.14.45%

Answer rating: 100% (QA)

Given are following data Outstanding bank loan amount 404000 ... View the full answer