Roma Company obtained a short-term bank loan for P1,000,000 at an annual interest rate 12%. As a condition of the loan Roma required to maintain a compensating balance of P200,000 in its checking account. The checking account earns interest at an annual rate of 6%. Roman would otherwise maintain only P100,000 in its checking account for transactional purposes. Roma's effective interest costs of the loan is 12.67% O 12% O 13.50% O 14.00%