Accounts receivable as collateral, cost of borrowing Maximum Bank has analyzed the accounts receivable of Scientific Software, Inc. The bank has chosen eight accounts totaling $180,000 that it will accept as collateral. The bank's terms include a lending rate set at prime + 2.5% and a 1.5% commission charge. The prime rate currently is 10%. a. The bank will adjust the accounts by 10% for returns and allowances. It then will lend up to 95% of the adjusted acceptable collateral. What is the maximum amount that the bank will lend to Scientific Software? b. What is Scientific Software's effective annual rate of interest if it borrows $115,000 for 12 months? For 6 months? For 3 months? (Note: Assume a 365-day year and a prime rate that remains at 10% during the life of the loan.) ..... a. The maximum amount that the bank will lend to Scientific Software is $ (Round to the nearest dollar.) b. If the firm borrows $115,000 for 12 months, the effective annual rate is %. (Round to two decimal places.) If the firm borrows $115,000 for only 6 months, the effective annual rate is %. (Round to two decimal places.) If the firm only borrows $115,000 for 3 months, the effective annual rate is %. (Round to two decimal places.)