The York Company has arranged a line of credit that allows it to borrow up to $48 milion at any time. The interest rate is .624 percent per month. Additionally, the company must deposit 6 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?

Multiple Choice

9.16%

7.19%

6.64%

8.25%

7.75%