Charlie's Snake Shop has an outstanding 120-day bank loan of $300,000 at an annual interest rate of 3.90%. The company is required to maintain a 15% compensating balance in its chequing account. What is the annual interest cost on the loan? The company has idle cash in the amount of $20,000 that will count toward the compensating balance. Select one O a. 1.51% O . 7.96% O C. 4.25% O d. 1.40%