Chapter 18 Homework Fundamentals of Finance Spring 2018 instructions help Question 10 (of 10) Save & xit Submit 10 .00 10.00 points In exchange for a $510 million fixed commitment line of credit, your firm has agreed to do the following Pay 2 percent per quarter on any funds actually borrowed. Maintain a 3 percent compensating balance on any funds actually borrowed Pay an up-front commitment fee of .1 percent of the amount of the line Based on this information, answer the following a Ignoring the commitment fee, what is the effective annual interest rate on this line of credit? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Effective annual intorest rate b Suppose your firm immediately uses $250 million of the line and pays it off in one year. What is the effective annual interest rate on this $250 million loan? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Effective annual interest rate References eBook & Resources Leaming Objective: 18-03 The essentials of short-term financial planning. Worksheet Difficulty: Challenge Section: 18.5 Short-Term