JP Morgan has offered to lend Toyota $$50$M for one year at $6\mathrm{.}4\%.$ They require a $21\%$ compensating balance. what is the effective interest rate?

$($ Enter the answer as a percentage with $1$ decimal.$)$

what if$,$ instead of a compensating balance, this loan was offered as an installment loan where toyota would make $12$ equal monthly payments to retire the loan?

$($ Enter the answer as a percentage with $1$ decimal.$)$

Hint: remember to use the installment rate formula rather than the compensating balance.