34. Juno Industrial Supply has a $150,000 line of credit with a 5.518 percent interest rate. The loan agreement requires a 1 percent compensating balance, which is based on the total amount borrowed, and which will be held in an interest-free account. What is the effective interest rate if the firm borrows $90,000 on the line of credit for one year?
Multiple Choice
5.42 percent
5.47 percent
5.50 percent
5.53 percent
5.57 percent