Colson Company has a line of credit with Federal Bank Colson can borrow up to $490,500 at any time over the course of the calendar year. The following table shows the prime rate expressed as an annual percentage along with the amounts borrowed and repaid during the first four months of the year. Colson agreed to pay Interest at an annual rate equal to 3.00 percent above the bank's prime rate. Funds are borrowed or repald on the first day of each month. Interest is payable in cash on the last day of the month. The interest rate is applied to the outstanding monthly balance. For example, Colson pays 6.75 percent (3.75 percent -3.00 percent) annual Interest on $81,800 for the month of January Month January February March April Amount Borrowed or (Repaid) $ 81,800 119,300 (22,200) 25,300 Prime Rate for the Month 3.75% 2.75 3.25 3.75 Required a. Compute the amount of interesi that Colson will pay on the line of credit for the first four months of the year b. Compute the amount of Colson's ability at the end of each of the first four months