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Sunrise has negotiated a $1,500,000 line of credit with the local bank. The terms of the line of credit call for an interest rate of

Sunrise has negotiated a $1,500,000 line of credit with the local bank. The terms of the line of credit call for an interest rate of 2% above prime on any borrowing plus 0.6% on any unused balance. If the line is not used during the year, what cost will Sunrise incur?

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