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 0.69 percent per month. In addition, 2 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)8.78%9.14%8.62%8.60%11.83%

(b)	Suppose you need $20 million today and you repay it in 5 months. How much interest will you pay? (Do not round your intermediate calculations.)