A bank expects to raise $30 million in new money if it pays a deposit rate of 7%, $60 million in new money if it pays a deposit rate of 7.5%, $90 million in new money if it pays a deposit rate of 8%, and it can raise $120 million in new money if it pays a deposit rate of 8.5%. The bank expects to earn 9% on all money that it receives in new deposits. What is the marginal cost of deposits if this bank raises its deposit rate from 7.5% to 8%?

a. 8.5%

b.7.5%

c.9.0%

d.8.5%

e. 9.5%