Cost of Bank Loans Gifts Galore Inc borrowed $1.75 million from National City Bank. The loan was made at a simple annual interest rate of 119 a year for 3 months. A 20% compensating balance requirement raised the elfective interest rate. Do not round intermediate calculations, Round your answers to two decimal places The nominal annual rate on the loan was 11.75% What is the true effective rate? b. What would be the effective cost of the loan if the not required discount interest? c. What would be the nominal annual interest rate on the loan if the bank did not require a compensating balance but required repayment in three equal monthly installments