A company has negotiated a credit facility with the following terms:

$5,000,000 line of credit

$3,000,000 average borrowing

30 basis point commitment fee on unused portion of line

Interest rate on advances is 1-month LIBOR plus 4%

1-month LIBOR is currently 2%

Compensating balance requirement of 20% on the outstanding borrowings

What is the effective annual borrowing rate for the line of credit?