Decatur Marina has a line of credit with a local bank that permits it to borrow up to $1.3 million at any time. The interest rate is 0.60 percent per month. The bank charges compound interest and also requires that 5 percent of the amount borrowed be deposited into a non-interest-bearing account. What is the effective annual interest rate on this loan 7.43 percent 7.83 percent 8.91 percent 6.68 percent 7.74 percent