The Odessa Supply Company is considering obtaining a loan from a sales finance company secured by inventories under a field warehousing arrangement.

Odessa would be permitted to borrow up to $$280,000$ under such an arrangement at an annual interest rate of $9$ percent. The additional cost of maintaining a

field warehouse is $$17,000$ per year. Assume that there are $365$ days per year. Determine the annual financing cost of a loan under this arrangement if

Odessa borrows the following amounts:

a$.$ $$280,000.$ Round your answer to two decimal places.

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b$.$ $$230,000.$ Round your answer to two decimal places.

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