A firm had a Floating rate loan from a bank to be paid at maturity with the following data:

Loan amount = $160,000

Time to Maturity = 180 days, year has 360 days.

Interest rate = Prime Rate + 2% increment (risk premium).

The prime rate is expected to have the following values:

the prime rate = 9% for the first 90 days.

the prime rate = 12% for the next 90 days.

The interest amount for the first 90 days

..

The interest amount for the next 90 days

..

Total interest rate

.

Effective Interest rate for 180 days

Effective Annual Interest rate

.