You are the CFO of a publicly traded corporation, and as a part of your responsibilities you arrange loans for various short term and long term funding requirements. The investment bank who provides those loans has submitted to you a list of terms.

You are requesting a $7,000,000 loan with a term of three months for short term financing needs, payroll, Christmas bonuses to employees, accounts payable, etc., the investment bank will require your firm to repay $7,125,000 at the end of those three months. What is the APR and EAR?

You had also requested terms for a 7 year loan for the purpose of purchasing new machinery and equipment. For $18,000,000 today, the investment bank requires $22,550,000 at the end of seven years. What is the interest rate?