Problem 5-53 Effective Interest Rate (LO4) In a discount interest loan, you pay the interest payment up front. For example, if a 1-year loan is stated as $12,000 and the interest rate is 10.25%, the borrower "pays" 0.1025 $12,000-$1,230 immediately, thereby receiving net funds of $10,770 and repaying $12,000 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 11.421% b. What is the effective annual rate on a 1-year loan with an interest rate quoted on a discount basis of 20.25%? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Effective annual rate