Carey Company is borrowing $225,000 for one year at 13.0 percent from Second Intrastate Bank. The bank requires a 18 percent compensating balance. The principal refers to funds the firm can utilize effectively (Amount borrowed Compensating balance).

What is the effective rate of interest?(Use a 360-day year.Input your answer as a percent rounded to 2 decimal places.)

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.)