A bank offers your firm a revolving credit arrangement for up to $$64$ million at an interest rate of $1\mathrm{.}45$ percent per quarter. The bank

also requires you to maintain a compensating balance of $5$ percent against the unused portion of the credit line, to be deposited in a

noninterest$-$bearing account. Assume you have a short$-$term investment account at the bank that pays $.86$ percent per quarter, and

assume that the bank uses compound interest on its revolving credit loans.

a$.$ What is your effective annual interest rate $($an opportunity cost$)$ on the revolving credit arrangement if your firm does not use it

during the year?

Note: Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

b$.$ What is your effective annual interest rate on the lending arrangement if you borrow $$38$ million immediately and repay it in one

year?

Note: Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

c$.$ What is your effective annual interest rate if you borrow $$64$ million immediately and repay it in one year?

Note: Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$