Birthdaybook requires $125,000 to finish a project.

a.With a compensating balance requirement of 10%, how much will the firm need to borrow?(Round the final answer to 2 decimal places.)

Amount to be borrowed=$138888.89

b.Given your answer to part a and a stated interest rate of 7 percent on the total amount borrowed, what is the annual rate on the $125,000 actually being used?(Use 365 days in a year. Do not round intermediate calculations. Round the final answer to 2 decimal places.)

Annual rate% =

Hello i am finished part a but having troubles with part b of these practice questions. im not sure what formula to use i tried the generic Rannual formula and it wont work.