Exercise 10-5A (Algo) Calculations for a line of credit LO 10-2 Colson Company has a line of credit with Federal Bank. Colson can borrow up to $384.500 at any time over the course of the Year 1 calendar year. The following table shows the prime rate expressed as an annual percentage, along with the amounts borrowed and repaid duting the first four months of Year 1. Colson agreed to pay interest at an annual rate equal to 300 percent above the banks prime rate. Funds are borrowed or repaid on the first day of each month. Interest is payoble in cash on the last day of the msonth. The interest rate is applled to the outstanding monthly balance. For example, Colson pays 6.75 percent 3.75 percent +3.00 percentit? annual interest on $80.000 for the month of January. Required: a. Compute the amount of interest that Colson will pay on the line of credit for the first four months of Year 1 . Note: Do not round intermediote calculotions. Round your final answers to the neorest whole dollae. 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