Question: Jackson Industries has borrowed $ 1 2 7 , 0 0 0 under a line - of - credit agreement. While the company normally maintains

Jackson Industries has borrowed $127,000 under a line-of-credit agreement. While the company normally maintains a checking account balance of $12,000 in
the lending bank, this credit line requires a 18% compensating balance. The stated interest rate on the borrowed funds is 13%. What is the effective annual
rate of interest on the line of credit?
The effective annual rate of interest is
%.(Round to two decimal places.)
Jackson Industries has borrowed $127,000 under a line-of-credit agreement. While the

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