Momo Investments Ltd borrowed R200 000 for one year under a revolving credit agreement that authorised and guaranteed the firm access to R350 000. The revolving credit agreement had a stated interest rate of 6.5% and charged the firm a 3% commitment fee on the unused portion of the agreement. Based on this information, the effective annual rate on the loan was ... (assume 360 days in a year). 1. 7.75%. 2. 8.75%. 3. 9.10%. 4. 9.50%