please show the calculations step by step $.$ DBC Company has received a confirmation letter from the First National Bank of Miami

$($FNBM$)$ about a line of credit for $$40,000,000$ on January $2,2023.$ According to the terms of

this short$-$term loan, DBC Company will be charged the following:

A$.$ DBC will be charged $50$ basis points interest $($on annual basis$)$ for any unused

amount of credit from the commencement of this agreement.

B$.$ Upon usage of any funds, the interest charge would be Prime rate plus $50$ basis

points. The prime rate at the time of the commencement of this loan on January $2,$

$2023,$ was $5\mathrm{.}5\%.$

C$.$ The following events took place in $2023$:

On March $1,2023$; DBC Co$.,$ used $$7,000,000$ against its line of credit for

its working capital purposes.

On May $1,2023$; DBC Co$.,$ used an additional $$3,600,000$ to purchase fixed

assets.

On October $1,2023$; DBC Co$.,$ used $$9,000,000$ against its line of credit for

its working capital purposes.

Assuming no additional loan or payment to the bank had been made during $2023$; Calculate total

interest cost, nominal, and effective interest rates for DBC Company in $2023.$

AD$-712-$Fall$-2023$