28. K Bank has a $30 million portfolio of construction loans which yield 8% and $70 million of home loans which yield 5%. Transactions accounts are $65 million cost the bank 3%. If bank capital is $3 million, what is the highest rate the bank can offer time depositors and still earn 14% for bank shareholders?

A) 1.95%

B) 2.4%

C) 3.85%

D) 10.08%

E) 11.03%

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