Question: Cray Computing needs a 6 - month loan for $ 3 0 0 , 0 0 0 . Its bank quotes a simple interest rate

Cray Computing needs a 6-month loan for $300,000. Its bank quotes a simple interest rate of 11% on the loan.
a.) What is the annual percentage rate (APR) if there is a compensating balance requirement of 30% of the loan amount?
b.) What is the effective annual rate (EAR) if there is a compensating balance requirement of 30% of the loan amount?

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