Birthdaybook requires $314,760 to complete a project.

a.	With a compensating balance requirement of 14%, how much will the firm need to borrow?

b.	Given your answer to part a and a stated interest rate of 18 percent on the total amount borrowed, what is the annual rate on the $314,760 actually being used? (Use 365 days in a year. Do not round intermediate calculations. Round the final answer to 2 decimal places.)