Question: Please help me solve this problem! 8. .54 The Bradford Co. has a line of credit with a local bank that permits them to borrow

Please help me solve this problem!

8. .54 The Bradford Co. has a line of credit with a local bank that permits them to borrow up to $5 million at any time. The interest rate is .43 percent per month. The bank charges compound interest and also requires that 5 percent of the amount borrowed be deposited into a noninterest-bearing account. What is the effective annual interest rate on this loan? Select one: Oa. 5.38 percent O b. 5.13 percent O c. 5.67 percent OFd. 5.56 percent O e. 5.09 percent

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