A company has borrowed $210,000 under a line-of credit agreement. It must pay a stated interest rate of 12% paid at maturity and maintain, in its checking account, a compensating balance equal to 14%...

A company has borrowed $210,000 under a line-of credit agreement. It must pay a stated interest rate of 12% paid at maturity and maintain, in its checking account, a compensating balance equal to 14% of the amount borrowed. a. Calculate the compensating balance amount. b. Calculate the effective interest rate? c. Calculate the effective interest rate if the interest paid in advance?