Neveready Flashlights incorporated needs $$351,000$ to take a cash discount of $\frac{3}{18},$ net $75.$ A banker will lend the money for $57$ days

at an interest cost of $$12,200.$

a$.$ What is the effective rate on the bank loan?

Note: Use a $360-$day year. Do not round intermediate calculations. Input your answer as a percent rounded to $2$ decimal places.

Effective rate of interest

b$.$ How much would it cost $($in percentage terms$)$ if the firm did not take the cash discount but paid the bill in $75$ days instead of $18$

days?

Note: Use a $360-$day year. Do not round intermediate calculations. Input your answer as a percent rounded to $2$ decimal places.

Cost of not taking a cash discount

c$.$ Should the firm borrow the money to take the discount?

No

No

Yes

d$.$ If the banker requires a $20$ percent compensating balance, how much must the firm borrow to end up with the $$351,000?$

Amount to be borrowed

e$-1.$ What would be the effective interest rate in part $d$ if the interest charge for $57$ days were $$7,200?$

Note: Use a$\text{'}360-$day year. Do not round intermediate calculations. Input your answer as a percent rounded to $2$ decimal places.