Dr. Ruth is going to borrow $5,900 to help wrhe a book. The loan is for one year and the money can either be percent and LIBOR 2.5 percent less. Also assume there will be a $85 transaction foe wih LIBOR (this amount must be aded to the interest cost with LIBOR) borrowed at the prime rate or the LIBOR rate. Assume the prime rate is 11 a. What is the effective interest rate on the LIBOR oan?(Use a 360-day year. Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Effective interest rate b. Which loan has the lower efective interest cost? O LIBOR Prime