In exchange for a $3 million fixed commitment line of credit, a firm has agreed to the following conditions: 0.6% monthly interest will be paid on any funds actually borrowed 7% compensating balance will be maintained on any funds actually borrowed 0.2% of up-front commitment fee will be paid based on the amount of the line. If the firm immediately borrows $1,000,000 from the line to use for 1 year, what would be EAR on this borrowed amount?

Note that the commitment fee will be paid on the fixed commitment line of credit amount ($3 million). (Do not use the % sign. If your answer is 12.34%, then enter 12.34)