Kim Sei-young is the CFO of Kim's Golf Instruction Inc. Kim would like to take out a loan for expansion and is told that the rate of interest is 10 percent, but a compensating balance of 15 percent is required. What is the effective rate of interest if Kim would like to borrow $300,000 from her bank for one year? Select one:

A. 10.11%

B. 11.76%

C. 13.33%

D. 14.12%