Exercise 10-5A (Algo) Calculations for a line of credit LO 10-2 Colson Company has a line of credil with Federal Bank. Colson can borrow up to $473,500 al any 11 me over the course of the Year 1 repald during the first four months of Year 1. Colson agreed to pay interest at an annual rale equal to 2.50 percent above the bank's interest rate is applied to the outslanding monthly balance. each month. Interest is payable in cash on the last day of the month. The annual interest on $76,500 for the month of January. Required: a. Compute the amount of interest that Colson will pay on the line of credilt for the first four months of Year 1. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar. b. Compute the amount of Colson's liability at the end of each of the first four months. Note: Round your final answers to the nearest whole dollar