Carey Company is borrowing $375,000 for one year at 12.5 percent from Second Intrastate Bank. The bank requires a 15 percent compensating balance. The principal refers to funds the firm can utilize effectively (Amount borrowed - Compensating balance). a. What is the effective rate of interest? Note: 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? Note: Use a 360-day year. Input your answer as a percent rounded to 2 decimal places. Effective rate of interest %