please provide explanations too. Thank you so much. It would be a great help

AJU est rate of 1.65 percent per M 14. Costs of Borrowing. A bank offers your firm a revolving credit arrangement for up to $75 million at an interest rate of 1.65 nere quarter. The bank also requires you to maintain a compensating h of 4 percent against the unused portion of the credit line, to be de in a noninterest-bearing account. Assume you have a short-term investment account at the bank that pays .49 percent per quarter, and assume that the bank uses compound interest on its revolving eredit loans. a. What is your effective annual interest rate (an opportunity cost) on the revolving credit arrangement if your firm does not use it during the year? b. What is your effective annual interest rate on the lending! arrangement if you borrow $40 million immediately and repay it in one year? c. What is your effective annual interest rate if you borrow $75 million immediately and repay it in one year