An office management firm has developed a system for efficiently organizing small medical and dental practices both through proprietary software and through unique training programs for staff. it has recently acquired a firm specializing in providing management services for veterinary practices. the office management firm is hoping to: a. implement vertical integration. b. acquire specialized talent from the veterinary management company. c. achieve economies of scope.

Carey company is borrowing $225,000 for one year at 9.5 percent from second intrastate bank. the bank requires a 15 percent compensating balance. the principal refers to funds the firm can effectively utilize (amount borrowed − compensating balance). a. what is the effective rate of interest? (use a 360-day year. input your answer as a percent rounded to 2 decimal places.) b. what would the effective rate be if carey were required to make 12 equal monthly payments to retire the loan?