ork 2 Help 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 $14,000 and the interest rate is 10.50%, the borrower "pays" 01050 $14,000 in a year $14,000 $1,470 immediately, thereby receiving net funds of $12,530 and repaying 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 20.50%? (Do not round Enter your answer as a percent rounded to 2 decimal places.)