Bank One extends a $3 million line of credit to Castle Corp. The stated rate of interest is 9.5%. Bank One requires Castle to maintain compensating balances equal to 10% of the amount of the line. Assuming that Castle would not normally carry any deposits at the bank, what is the effective annual cost of the loan? [Note: there is no commitment fee] a 9.5% b. 10.6% c 11.6% 123%