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12.On January 1, 2017, Lynn Company borrows $3,000,000 from National Bank at1 1% annual $300,000 on interest. In addition, Lynn is required to keep a
12.On January 1, 2017, Lynn Company borrows $3,000,000 from National Bank at1 1% annual $300,000 on interest. In addition, Lynn is required to keep a compensatory balance of deposit at National Bank which will earn interest at 5%. The effective interest that Lynn pays on its $3,000,000 loan is a. 10.0%. b. 11.0%. C. 11.5%. d. 11.6%
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