Problem 8-17 Effective rate under different terms [LO2] Your company plans to borrow $10 million for 12 months, and your banker gives you a stated rate of 14 percent interest. Calculate the effective rate of interest for the following types of loans. a. Simple 14 percent interest with a compensating balance of 18 percent. (Use a 360-day year. Input your answer as a percent rounded to 2 decimal places.) Effective rate of interest % b. Discounted interest (with no compensating balance). (Input your answer as percent rounded to 2 decimal places.) Effective rate of interest % c. An installment loan (12 payments). (Input your answer as a percent rounded to 2 decimal places.) Effective rate of interest % d. Discounted interest with a compensating balance of 9 percent. (Use a 360-day year. Input your answer as a percent rounded to 2 decimal places.) Effective rate of interest % References Worksheet