Problem 8-4 Effective rate of interest [LO2] Your bank will lend you $4,000 for 45 days at acost of $50 interest. What is your effective rate of interest? (Use a 360-day year. Do not round intermediate calculations. Input your answer as a whole percent.) Input variables: Loan amount Loan term Interest amount Days in year $4,000 45 days $50 360 days Solution and Explanation: Effective rate (Interest/Principal)x(Days in year/Days loan is outstanding) Effective rate