Storm Electronics has set up a formal line of credit of $2 million with First Kentucky Bank. The line of credit is good for up to three years. The bank will be charging them an interest rate of 6.25% on the loan, and in addition the firm will pay an annual fee of 60 basis points, 0.60%, on the unused balance. The firm borrowed $1,500,000 on the first day the credit line became available, and this amount is outstanding all year. What is the firm's effective interest rate on this line of credit? Round your final percentage answer to two decimal places

6.45%

6.85%

6.25%

5.65%