Dr. Ruth is going to borrow $5,000 to help write a book. The loan is for one year and the money can either be borrowed at the prime rate or the LIBOR rate. Assume the prime rate is 6 percent and LIBOR 1.5 percent less. Also assume there will be a $40 transaction fee with LIBOR, and that there are 365 days in the year. What loan has the lower annual interest cost? multiple choice LIBOR rate Prime rate Based on the answer above, what would be the lower annual interest cost? (Round the final answer to 1 decimal place.) Lower annual interest cost 5.3 %