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Carla Vista, Inc., has just set up a formal line of credit of $10 million with First Community Commercial Bank. The line of credit is

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Carla Vista, Inc., has just set up a formal line of credit of $10 million with First Community Commercial Bank. The line of credit is good for up to five years. The bank will charge Carla Vista an interest rate of 6.25 percent on any amount borrowed, and the firm will pay an annual fee of 73 basis points on the unused balance. The firm borrowed $7.3 million on the first day the credit line became available. What is the effective interest rate on this line of credit? (Round answer to 2 decimal places, e.g. 12.25%.) Effective interest rate % Cullumber Handicrafts, Inc., has net sales of $4.40 million with 50 percent being credit sales. Its cost of goods sold is $2.64 million. The firm's cash conversion cycle is 59.5 days, and its operating cycle is 92.0 days. What is the firm's accounts payable? (Use 365 days for calculation. Round final answer to the nearest whole dollar, e.g. 5,275.) The Crane Bank requires borrowers to keep an 9 percent compensating balance. Gorman Jewels borrows $290,000 at a 6 percent stated APR. What is the effective interest rate on the loan? (Round answer to 2 decimal places, e.g. 12.25%.) Effective interest rate %

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