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12. Microsoft has a $500,000 line of credit at .5% above the prime rate. The prime rate was 6% for the first 120 days and

12. Microsoft has a $500,000 line of credit at .5% above the prime rate. The prime rate was 6% for the first 120 days and 6.55% for the remaining 8 months. Assume Microsoft borrows $350,000 on January 1st and repays the balance with 1 payment on December 31st. Calculate the annual financing costs below.

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