3 A company has a $500,000 line of credit with its local bank. Its borrowing rate is Prime +1. It is required to keep a compensating 4 balance of 10% of its loan in its checking account. In January it borrowed $400,000 on its line and had to put the requred amount 5 as compensating balance into its checking account. Part a. - If the prime rate was 3%, how much was its interest for the month of January? Part b. - What is its APR