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Your company has agreed to a $410 million fixed-commitment line of credit. The loan agreement calls for your company to pay 1.48 percent per quarter on any funds borrowed and maintain a 5 percent compensating balance on any funds borrowed at zero percent interest. What is the effective annual interest rate on this line of credit? 6.05% 5.19% 5.38% 6.37% 6.21% Your company has arranged a revolving credit agreement for up to $81 million at an interest rate of 1.50 percent per quarter. The agreement also requires your company to maintain a compensating balance of 3 percent of the unused portion of the credit line, to be deposited in a noninterest-bearing account. Your company's short-term investment account at the same bank pays an interest rate of 64 per quarter. What is the effective annual interest rate if your company does not use the revolving credit arrangement during the year? 2.58% 3.79% 6.14% 3.25% 2.84%