Question: Digital Access Incorporated needs $291,280 in funds for a project. Assume the loan term is one year. a. With a compensating balance requirement of 12

Digital Access Incorporated needs $291,280 in funds for a project.

Assume the loan term is one year.

a. With a compensating balance requirement of 12 percent, how much will the firm need to borrow?

Note: 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 $291,280 actually being used?

Note: Input your answer as a percent rounded to 2 decimal places.

Digital Access incorporated needs $291,280 in funds for a project. Assume the loan term is one year: o. With a compensating balance requirement of 12 percent, how much will the firm need to borrow? Note: 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 $291,280 actually being used? Note: Input your answer as a percent rounded to 2 decimal places

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