The York Company has arranged a line of credit that allows it to borrow up to $59 milion at any time. The interest rate is .635 percent per month. Additionally, the company must deposit 5 percent of the amount borrowed in a non-interest bearing account. The bank uses compound interest on its line-of-credit loans. What is the effective annual rate on this line of credit?

A) 7.89%

B) 7.29%

C) 6.68%

D) 9.23%

E) 8.31%