=+LG 3 E16–4 Diamantis Masoutis S.A., a Greek supermarket chain, borrowed €250,000 under a line-of-credit agreement. Although the company normally maintains a checking account balance of €15,000 in the lending bank, this credit line requires a 10% compensating balance. The stated interest rate on the borrowed funds is 8%. What is the effective annual rate of interest on the line of credit?