90) Crazy Pete's Adult Beverages has a line of credit of $325,000 with an interest rate of 1.85 percent per quarter. Its revenue was $457,000 las quarter. The credit line also requires that 2.5 percent of the unused portion of the credit line be deposited in a non-interest-bearing account as a compensating balance. Crazy Pete's short-term investments are earning .48 percent per quarter. What is the effective annual interest rate on this arrangement if the line of credit goes unused all year? Assume any funds borrowed or invested use compound interest. A) 7.61 percent B) 10.38 percent C) 1.93 percent D) 2.14 percent E) 3.47 percent