Your company plans to borrow $5 million for 12 months, and your banker gives you a stated rate of 8 percent interest.

Calculate the annual rate of interest for the following types of loans.

a. Simple 8 percent interest with a 10 percent compensating balance. (Use 365 days a year. Round the final answer to 2 decimal places.)

Annual rate 8.89 %

b. Discounted interest. (Use 365 days a year. Round the final answer to 2 decimal places.)

Annual rate 8.70 %

c. An installment loan (12 payments). (Round the final answer to 2 decimal places.)

Annual rate %

d. Discounted interest with a 1 percent administration fee. (Round the final answer to 2 decimal places.)

Annual rate %