Must show your work. Suppose that you have access to a credi…

Must show your work. Suppose that you have access to a credit line in the amount of $500,000. The interest rate on the credit line is 5.75%, the commitment fee is 0.35% on the unused portion of the line, average daily borrowing is estimated to be $200,000. (No compensating balance required).  a. Find the effective cost b. Assume a compensating balance of 10%, find the effective cost.