Last part

Accounts receivable as collateral, cost of borrowing Maximum Bank has analyzed the accounts receivable of Scientific Software, Inc. The bank has chosen eight accounts totaling $180,000 that it will accept as collateral. The bank's terms include a lending rate set at prime +2.5% and a 2% commission charge. The prime rate currently is 7%. a The bank will adjust the accounts by 10% for returns and allowances. It than will lend up to 95% of the adjusted acceptable collateral. What is the maximum amount that the bank will lend to Scientific Software? b. What is Scientific Software's effective annual rate of interest if it borrows $120,000 for 12 months? For 6 months? For 3 months? The maximum amount that the bank will lend to Scientific Software is $ 153900. (Round to the nearest dollar.) b. If the firm borrows $120,000 for 12 months, the effective annual rate is 11.5 %. (Round to two decimal places.) If the firm borrows $120,000 for only 6 months, the effective annual rate is 13.96%. (Round to two decimal places.) If the firm only borrows $120,000 for 3 months, the effective annual rate is %. (Round to two decimal places.)