$14-12$ Connecticut Advanced Technologies $($CAT$)$ has made arrangements with its bank to

get a $30-$day $$150,000$ simple interest loan. The quoted interest rate on the loan is $10$

percent. Calculate the APR and $r_{\text{E}\text{A}\text{R}}$ assuming the loan

$($a$)$ has no compensating balance requirement and

$($b$)$ has a $20$ percent compensating balance requirement, and CAT currently holds no

funds at the lending bank.

$($LO $14-5)$