The following information apples to the questions displayed below.,J Melvin Company has a line of credit with Bay Bank. Melvin can borrow up to $490,000 at any time over the course of the 2014 calendar year. The following table shows the prime rate expressed as an annual percentage along with the amounts borrowed and repald during 2014. Melvin agreed to pay Interest at an annual rate equal to 1 percent above the bank's prime rate. Funds are borrowed or repald on the first day of each month. Interest is payable In cash on the last day of the month. The Interest rate is appliled to the outstanding monthly balance. For example, Melvin pays 5 percent (4 percent + 1 percent) annual Interest on $66,000 for the month of January Prime Rate for the Month, % 4 4 Amount Borrowed or (Repald) Month $ 66,000 January February March April through October November December 48,000 (39,000) No change (29,000) (10,000) No change 5 4 Melvin earned $34,000 of cash revenue during 2014