simple interest

Refer to the information provided in Problem 16–8. To borrow the funds it needs, MAP had to agree to a simple interest loan that required a 15 percent compensating balance. Suppose that MAP needs $5.1 million to pay bills that are currently due. (a) If it does not normally maintain a cash balance at the bank, how much must MAP borrow? (b) If it normally maintains a cash $500,000 balance at the bank, how much must MAP borrow? In this case, what is the loan’s APR and rEAR?