Question: Problem 8-13 Compensating balances (LO8-2] Digital Access Inc. needs $317,720 in funds for a project. (Assume the loan term is one year.) a. With a

Problem 8-13 Compensating balances (LO8-2] Digital Access Inc. needs $317,720 in

Problem 8-13 Compensating balances (LO8-2] Digital Access Inc. needs $317,720 in funds for a project. (Assume the loan term is one year.) a. With a compensating balance requirement of 6 percent, how much will the firm need to borrow? (Do not round intermediate calculations.) Amount to be borrowed b. Given your answer to part a and a stated interest rate of 12 percent on the total amount borrowed, what is the effective rate on the $317,720 actually being used? (Input your answer as a percent rounded to 2 decimal places.) Effective rate of interest %

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