A company has a $5 million line of credit at its bank, with an interest rate set at Prime plus 2.5%. (Prime is currently at 5.25%) The line also has a commitment fee of 50 basis points on the unused portion of the line. If the company runs an average balance on the line of $3.5 million, what is the annual interest rate they are paying? C 5.46% 7.96% C 7.75% 8.25%