Burt's Department Store needs $$673,000$ to take a cash discount of $\frac{2\mathrm{.}50}{15},$ net $75.$ A banker will loan the money for $60$ days at an

interest cost of $$14,800.$

a$.$ What is the annual rate on the bank loan? $($Use $365$ days in a year. Do not round intermediate calculations. Round the final

answer to $2$ decimal places.$)$

Annual rate

$\%$

b$.$ How much would it cost $($in percentage terms$)$ if Burt's did not take the cash discount and paid the bill in $75$ days instead of $15$ days?

$($Use $365$ days in a year. Do not round intermediate calculations. Round the final answer to $2$ decimal places.$)$

Cost of not taking a cash discount

$\%$

c$.$ Should Burt's borrow the money to take the discount?

Yes

No

d$.$ If the banker requires a $10$ percent compensating balance, how much must Burt's borrow to end up with the $$673,000?($Round the

final answer to the nearest whole dollar.$)$

Amount to be borrowed

e$-1.$ What would be the interest rate in part $d$ if the interest charge for $60$ days were $$20,250?($Use $365$ days in a year. Do not round

intermediate calculations. Round the final answer to $2$ decimal places.$)$

Annual rate

$\%$

e$-2.$ Should Burt's borrow with the $10$ percent compensating balance? $($There are no funds to count against the compensating balance

requirement.$)$

No

Yes