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On a $1 million line of credit for one year, a company has agreed to the...

On a $1 million line of credit for one year, a company has agreed to the following conditions: (A) accrue 0.52% monthly interest on any funds borrowed; (B) maintain a compensating balance of 8.90% of any funds borrowed; and (C) pay the accrued interest and the amount borrowed together at the end of the year. The company does not have excess cash and will need to borrow additional funds under the line of credit to keep the compensating balance. If the company needs $100,000 after setting aside the compensating balance, how much interest will it pay in total at the end of the year?

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