I. MISC Berhad is experiencing cash flow problems about RM0.5 million. Due to this situation, the company unable to take advantage to grab the discount payment within 20 days from a trade creditor. The company has stretched the payment to 45 days. On the other hand, Maybank has offered a loan to alleviate the companys cash flow problems. The loan has a 12% discounted interest and requires a 10 percent compensating balance. Determine the effective annual cost of the bank loan offered.

II. Based on the answer in question (I), the amount received is too low. However, the company is shot RM500,000. If the company need RM500,000 as the amount received, calculate the amount of borrowing the company supposed to apply.

ps: help me to answer this question, urgent! Thank you