In a discount interest loan, you pay the interest payment up front. For example, if a 1-year loan is stated as $50,000 and the interest rate is 7.50%, the borrower pays 0.0750 $50,000 = $3,750 immediately, thereby receiving net funds of $46,250 and repaying $50,000 in a year.

a. What is the effective interest rate on this loan? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

b. What is the effective annual rate on a 1-year loan with an interest rate quoted on a discount basis of 17.50%?

LIRCR my work In a discount interest loan, you pay the interest payment up front. For example, if a 1-year loan is stated as $50,000 and the interest rate is 7.50%, the borrower "pays" 0.0750 * $50,000 - $3,750 immediately, thereby receiving net funds of $46,250 and repaying $50,000 in a year. a. What is the effective interest rate on this loan? (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Effective interest rate b. What is the effective annual rate on a 1-year loan with an interest rate quoted on a discount basis of 1750%? (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Effective annual rate