With a compensating balance requirement of 7 percent how


Digital Access Inc. needs $323,640 in funds for a project. (Assume the loan term is one year.) a. With a compensating balance requirement of 7 percent, how much will the firm need to borrow? (Do not round intermediate calculations.) Amount to be borrowed $ b. Given your answer to part a and a stated interest rate of 17 percent on the total amount borrowed, what is the effective rate on the $323,640 actually being used? (Input your answer as a percent rounded to 2 decimal places.) Effective rate of interest %

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Financial Management: With a compensating balance requirement of 7 percent how
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