18 Colson Company has a line of credit with Federal Bank Colson can borrow up to $372,500 at any time over the course of the 2018 calendar year. The following table shows the prime rate expressed as an annual percentage along with the amounts borrowed and repaid during the first four months of 2018. Colson agreed to pay interest at an annual rate equal to 250 percent above the bank's prime rate. Funds are borrowed or repaid on the first day of each month Interest is payable in cash on the last day of the month. The interest rate is applied to the outstanding monthly balance. For example, Colson pays 675 percent (4.25 percent. 250 percent) annual interest on $83.300 for the month of January 078 port Prie Rate for the Month Month January February March April Amount Borrowed or Cepaid) $ 3,300 119.000 (24,500) 34,800 3.25 3.75 4.25 18 a. Compute the amount of interest that Colson will pay on the line of credit for the first four months of 2018 (Round answer to nearest whole dollar.) 0.78 Interest Paid book January February March April References b. Compute the amount of Colson's liability at the end of each of the first four months (Do not round intermediate calculations Round your final answers to the nearest whole dollar) Month Balance Erid of Month January February March |April