LG $3$ P$16-12$ Compensating balances and effective annual rates Lincoln Industries has a line of credit at Bank Two that requires it to pay $11\%$ interest on its borrowing and to maintain a compensating balance equal to $15\%$ of the amount borrowed. The firm has borrowed $$800,000$ during the year under the agreement. Calculate the effective annual rate on the firm's borrowing in each of the following circumstances:

a$.$ The firm normally maintains no deposit balances at Bank Two.

b$.$ The firm normally maintains $$70,000$ in deposit balances at Bank Two.

c$.$ The firm normally maintains $$150,000$ in deposit balances at Bank Two.

d$.$ Compare, contrast, and discuss your findings in parts $a,b,$ and $c.$