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Cost of bank loan Data Back-Up Systems has obtained a $22,000, 120-day bank loan at an annual interest rate of 14%, payable at maturity. (Note: Assume a 365-day year.) a. How much interest (in dollars) will the firm pay on the 120-day loan? b. Find the 120-day rate on the loan. c. Annualize your result in part b to find the effective annual rate for this loan, assuming that it is rolled over every 120 days throughout the year under the same terms and circumstances. a. The amount of interest on the loan is (Round to the nearest cent.) b. The effective 120-day rate is 1%. (Round to two decimal places.) c. The effective annual rate is %. (Round to two decimal places.)