Problem $8-13($Algo$)$ Compensating balances $[$LO$8-2]$

Digital Access Incorporated needs $$281,260$ in funds for a project.

Assume the loan term is one year.

a$.$ With a compensating balance requirement of $18$ percent, how much will the firm need to borrow? Note: Do not round intermediate calculations.

Amount to be borrowed

b$.$ Given your answer to part a and a stated interest rate of $19$ percent on the total amount borrowed, what is the effective rate on the $$281,260$ actually being used?

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

Effective rate of interest

$\%$