You've worked out a line of credit arrangement that allows you to borrow up to $$70$ million at any time. The interest rate is $0\mathrm{.}52$ percent per month. In addition, $3$ percent of the amount that you borrow must be deposited in a non$-$interest$-$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?

Annual interest rate

b$.$ Suppose you need $$17$ million today and you repay it in $8$ months. How much interest will you pay?

Interest paidKyoto Joe, Inc., sells earnings forecasts for Japanese

securities$.$ Its credit terms are $2/15,$ net $90.$ Based on experience,

$80$ percent of all customers will take the discount.$$What is the average collection period for the

company?$($Use $365$ days a year. Do not round

intermediate calculations.$)$If the company sells $1,240$ forecasts every month at a price of

$$1,850$ each, what is its average balance sheet amount in accounts

receivable?$($Use $365$ days a year. Do not round

intermediate calculations and enter your answer in dollars, not

millions of dollars, rounded to $2$ decimal places, e$.$g$.,$

$1,234,567\mathrm{.}89.)$a$.$ Average collection period?$\_\_\_\_\_\_\_\_$ daysb. Average balance?