A firm engaged a one-year, monthly pay. $100,000 line of credit at 6 percent plus a 0.25 percent commitment fee on the unused portion of the line. The firm used 80 percent of the line for the first...

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Extracted text: A firm engaged a one-year, monthly pay. $100,000 line of credit at 6 percent plus a 0.25 percent commitment fee on the unused portion of the line. The firm used 80 percent of the line for the first half year and reduced the loan amount to 40 percent for the rest of the year. What is the effective annual rate of the loan?