Rockford Filing Ltd. requires $1 million in financing for a 45-day period. Three alternatives are being considered.(Use 365 days in a year. Do not round intermediate calculations. Round the final answers to 2 decimal places.)

a.Establish a line of credit with the bank at an interest rate of 10 percent. The bank will charge a fee of 1% to establish the line of credit.

a. What is the actual percentage cost of the line of credit?