CH 14 Homework Send to Gradebook Question 8 /1 View Policies Current Attempt in Progress Sandhill Cosmetics management is setting up a line of credit at the company's bank for $5 million for up to two years. The interest rate is 6.60 percent and the loan agreement calls for an annual fee of 62 basis points on any unused balance for the year. If the firm borrows $1.8 million on the day the loan agreement is signed, what is the effective rate for the line of credit? (Round answer to 2 decimal places, eg. 12.25 %) Effective interest rate % eTextbook and Media Attempts: 0 of 3 used Submit Answer Save for Later Send to Gradebook Next