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 the unused portion of the line Interest rate on advances is 1-month LIBOR plus 4% 1-month LIBOR is currently 2%

What is the annual interest rate on the line of credit?
A. 6.0%
B. 6.2%
C. 9.0%
D. 9.3%