Cheap Money Bank offers your firm a discount interest loan with an interest rate of 7 percent for up to $14 million, and in addition requires you to maintain a 3 percent compensating balance against the face amount borrowed. What is the effective annual interest rate on this lending arrangement? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. In exchange for a $400 million fixed commitment line of credit, your firm has agreed to do the following: 1. Pay 1.94 percent per quarter on any funds actually borrowed. 2. Maintain a 2 percent compensating balance on any funds actually borrowed. 3. Pay an up-front commitment fee of .29 percent of the amount of the line. Based on this information, answer the following: a. Ignoring the commitment fee, what is the effective annual interest rate on this line of credit? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. Suppose your firm immediately uses $224 million of the line and pays it off in one year. What is the effective annual interest rate on this $224 million loan? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Answer is complete but not entirely correct