In exchange for a $450 million fixed commitment line of credit, your firm has agreed to do the following:

1.	Pay 2.0 percent per quarter on any funds actually borrowed.
2.	Maintain a 4 percent compensating balance on any funds actually borrowed.
3.	Pay an up-front commitment fee of 0.150 percent of the amount of the line.

Based on this information, answer the following:

a.	Ignoring the commitment fee, what is the effective annual interest rate on this line of credit?