Question: You are the owner and operator of Grains Plus located at Bathurst NSW. The rain during the springhave been the best in a decade and you are expecting a bumper wheat crop. This has prompted you torethink your current financing sources.According to your past experience, you believe there is a need for additional $240,000 for the threemonths' period ending with the close of the harvest season. After meeting with your business banker,you are bit puzzled over what the additional financing will actually cost. The banker has quoted you anannual interest rate of 1% over Reserve Bank of Australia cash rate (let's assume it's currently 3%p.a.) and has also requested that the firm increase its current bank balance of $4,000 up to 20% of theloan.(a) If interest and principle are all repaid at the end of the three-month loan term, what is the annual percentage rate on the loan offer make by the bank?