Koopman's Chickens, Inc. plans to borrow $275,000 from its bank for one year. The rate of interest is 9 percent, but a compensating balance of 20 percent is required. What is the effective rate of interest? a) Less than 11.4 percent b) More than 11.4 percent, but less than 11.6 percent c) More than 11.6 percent, but less than 11.8 percent d) More than 11.8 percent