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Carey Company is borrowing $450.000 for one year at 17.5 percent from Second Intrastate Bark The bank requires a 25 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.) Effective rate of interest % b. What would the effective rate be if Carey were required to make 12 equal monthly payments to retire the loan? (Use a 360-day year input your answer as a percent rounded to 2 decimal places.) Effective rate of interest %