You've worked out a line of credit arrangement that allows you to borrow up to $65 million at any time. The interest rate is 0.54 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.

Required:

(a)	What is the effective annual interest rate on this lending arrangement? (Do not round your intermediate calculations.)
	(Click to select) 6.68% 7.16% 6.89% 9.35% 6.78%

(b)	Suppose you need $18 million today and you repay it in 10 months. How much interest will you pay? (Do not round your intermediate calculations.)
	(Click to select) 19,682,397.85 -17,999,900.00 1,583,466.97 1,026,765.94 995,962.96