Dr. Ruth is going to borrow $6,100 to help write a book. The loan is for one year and the money can be borrowed at either the prime rate or the LIBOR rate. Assume the prime rate is 11 percent and LIBOR 2.5 percent less. Also assume there will be a $47 transaction fee with LIBOR (this amount must be added to the interest cost with LIBOR). a. What is the effective interest rate on the LIBOR loan? (Use a 360-day year. Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Effective interest rate b. Which loan has the lower effective interest cost? LIBOR O Prime Mary Ott is going to borrow $10,000 for 90 days and pay $154 interest. What is the effective rate of interest if the loan is discounted? (Use a 360-day year. Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Effective rate on a discounted loan %