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Autodrive Corp. has no spare cash and just arranged a line of credit for $50 million. The interest on any money borrowed is 15% (EAR)

Autodrive Corp. has no spare cash and just arranged a line of credit for $50 million. The interest on any money borrowed is 15% (EAR) and there is a 15% compensating balance requirement on the unused balance, i.e., 15% of the money not withdrawn must be kept in a non-interest bearing account with the bank.

What is the annual rate if the company borrows $23 million for one year?

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