Youve worked out a line of credit arrangement that allows you to borrow up to $60 million at any time. The interest rate is .581 percent per month. In addition, 3 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.

You've worked out a line of credit arrangement that allows you to borrow up to $60 million at any time. The interest rate is .581 percent per month. In addition, 3 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. Required: (a) What is the effective annual interest rate on this lending arrangement? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Effective annual rate (b) Suppose you need $22.31 million today and you repay it in five months. How much interest will you pay? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars (e.g., 1,234,567). Round your answer to 2 decimal places (e.g., 32.16).)