Problem:
The ABC Company paid total interest of $2,000 on its line of credit borrowings for the year. ABC paid a $100 commitment fee on an average borrowing of $20,000 for the year.
Required:
Question: What is ABC's annual effective rate of interest?A=
-  9.95%
-  10.00%
-  10.50%
-  12.71%
Note: Please show how you came up with the solution.