interest rate

MR Consulting recently borrowed from its bank using a 45-day discount interest loan that has a quoted interest equal to 10 percent. The loan requires MR to maintain a compensating balance equal to 20 percent of the amount borrowed. Prior to getting the loan, MR tried to maintain a checking account balance close to zero. (a) How much did MR borrow so that it was able pay $86,625 in bills that were due at the time the money was borrowed? (b) Compute the loan’s APR and rEAR.