Problem 8-25 Bank loan to take cash discount [LO8-1, 8-2] Harper Engine Company needs $602,000 to take a cash discount of 2.50/10, net 110. A banker will loan the money for 100 days at an interest cost of $14,600. a. What is the effective rate on the bank loan? (Use a 360-day year. Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Effective rate of interest b. How much would it cost (in percentage terms) if Harper did not take the cash discount but paid the bill in 110 days instead of 10 days? (Use a 360-day year. Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Cost of not taking a cash discount % uld Harper borrow the money to take the discount? O Yes O No d. If another banker requires a 10 percent compensating balance, how much must Harper borrow to end up with $602,000? (Round your answer to 2 decimal places.) Amount to be borrowed e-1. What would be the effective interest rate in part d if the interest charge for 100 days were $12,600? (Use a 360-day year. Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Effective rate of interest % Problem 8-20 Installment loan for multiyears [LO8-2] Lewis and Clark Camping Supplies Inc. is borrowing $66,000 from Western State Bank. The total interest is $18,700. The loan will be paid by making equal monthly payments for the next three years. What is the effective rate of interest on this installment loan? (Input your answer as a percent rounded to 2 decimal places.) Effective rate of interest %