Company needs to borrow $100,000 for the next 3 months. The company has a line of credit wiith the bank that allows them to borrow fuinds, with an 8% interest rate subject to a 20% of loan compensating balance. Currently the company has no funds on deposit with the bank and will need the loan to cover the compensating balance as well as their financing needs. What will the annual percentage rate (APR) for this financing?
a. 2.9&
b. 9.60%
c. 10.00%
d. 28.00%