III A borrower arranged a 250,000,000 revolving credit line with a bank. It draws down: 20% for the entire first quarter of the year An additional 20% for the second quarter - An additional 25% for the third quarter - Repays 10% at the beginning of the final quarter Assume the interest rate was 3% for the first quarter, and 3.3% for the rest of the year. The unused credit line fee was 0.2%. Ignore day counts for this question; that is just use / for each three month period. a) What is the interest amount and fee amount for each quarter? b) What is the effective "all in" cost of the borrowing? Do this by calculating the average amount actually borrowed over the course of the year. Then add up the total amount paid to the bank, and divide