Carey Company is borrowing $200,000 for one year at 12 percent from Second National Bank. The bank requires a 20 percent compensating balance. a. What is the annual rate of interest? (Use 365 days a year.) Annual rate of interest \% b. What would the annual rate be if Carey were required to make 12 equal monthly payments to retire the loan? (Use 365 days a year. Round the final answer to 2 decimal places.) Instaliment Ioan \%