Question: Digital Access Inc. needs $298,800 in funds for a project. (Assume the loan term is one ye ar.) a. With a compensating balance requirement of

Digital Access Inc. needs $298,800 in funds for a project. (Assume the loan term is one year.) a. With a compensating balance requirement of 10 percent, how much will the firm need to borrow? (Do not round intermediate calculations.)

b. Given your answer to part a and a stated interest rate of 18 percent on the total amount borrowed, what is the effective rate on the $298,800 actually being used? (Input your answer as a percent rounded to 2 decimal places.)

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