Your company has agreed to a $450 million fixed-commitment line of credit. The loan agreement calls for your company to pay 1.52 percent per quarter on any funds borrowed and maintain a 5 percent compensating balance on any funds borrowed at zero percent interest. What is the effective annual interest rate on this line of credit?

Multiple Choice :

5.53%

6.38%

6.55%

5.33%

6.22%