#CMAPopQuiz - July 16 Question Title * 1. On January 1, Scott Corporation received a $300,000 line of credit at an interest rate of 12% from Main Street Bank and drew down the entire amount on February 1. The line of credit agreement requires that an amount equal to 15% of the loan be deposited into a compensating balance account. What is the effective annual cost of credit for this loan arrangement? 11.00%. 12.00%. 12.94%. 14.12%. Done