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58 The York Company has arranged a line of credit that allows it to borrow up to $60 milion at any time. The interest rate

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The York Company has arranged a line of credit that allows it to borrow up to $60 milion at any time. The interest rate is .636 percent per month. Additionally, the company must deposit 6 percent of the amount borrowed in a noninterest-bearing account. The bank uses compound interest on its line-of-credit loans. What is the effective annual rate on this line of credit? Multiple Choice 8.41% 7.90% 9.34% 6.77% 7.34%

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