1. Jason loan officer at Kingston Bank quotes her a rate on a $2,700,000. 5 year revolving line of credit that he will use to make the monthly payments to the previous owner of White Brothers, the company he is buying. The bank is using his $1,000,000 in retirement funds as collateral. Being very financially sophisticated after going to Stanford, he feels like the deal Ben is offering him with an APR of 6% is a bargain and based on his credit rating, he plans to borrow from the bank at a great rate too. What is the Effective Annual Rate (EAR) on her revolving line of credit if Kingston Bank charges him an APR of 5.65 percent compounded monthly?

A) 5.80%

B)5.85%

C)5.56%

D)5.65%

E)5.75%

F)6.00%

G)6.17%