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pleaseeeeeee fast i need it fast pleaseee A bank offers your firm a 1-year discount interest loan of $1,000,000 loan at 8% per year and,

image text in transcribed pleaseeeeeee fast i need it fast pleaseee
A bank offers your firm a 1-year discount interest loan of $1,000,000 loan at 8% per year and, in addition, requires you maintain a 5% compensating balance against the amount borrowed. a) What is your total amount received? (10 Points) b) What is the effective annual interest rate on this lending arrangement? (5 Points)

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