birthdaybook requires $323,640 to complete a project.

a.	With a compensating balance requirement of 7%, how much will the firm need to borrow?

Amount to be borrowed

$

b.	Given your answer to part a and a stated interest rate of 17 percent on the total amount borrowed, what is the annual rate on the $323,640 actually being used? (Use 365 days in a year. Do not round intermediate calculations. Round the final answer to 2 decimal places.)

Annual rate

%