Youve worked out a line of credit arrangement that allows you to borrow up to $80 million at any time. The interest rate is .385 percent per month. In addition, 2 percent of the amount that you borrow must be deposited in a noninterest-bearing account. Assume that your bank uses compound interest on its line-of-credit loans.

a. What is the effective annual interest rate on this lending arrangement? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.1

b. Suppose you need $30 million today and you repay it in five months. How much interest will you pay? Note: Do not round intermediate calculations and enter your answer in dollars, not millions, rounded to 2 decimal places, e.g., 1,234,567.89

You've worked out a line of credit arrangement that allows you to borrow up to $80 million at any time. The Interest rate is .385 percent per month. In addition, 2 percent of the amount that you borrow must be deposited in a noninterest-bearing account. Assume that your bank uses compound Interest on Its Ine-of-credit loans. a. What is the effective annual Interest rate on this lending arrangement? Note: Do not round Intermedlate calculatlons and enter your answer as a percent rounded to 2 decimal places, e.g., 32:1 b. Suppose you need $30 million today and you repay it in five months. How much Interest will you pay? Note: Do not round Intermedlate calculatlons and enter your answer In dollars, not millions, rounded to 2 decimal places, e.g., 1,234,567.89