Problem 8-19 Effective rate under different terms [LO8-2] Zerox Copying Company plans to borrow $248,000. New Jersey National Bank will lend the money at one-half percentage point over the prime rate at the time of 12.50 percent (13 percent total) and requires a compensating balance of 23 percent. The principal in this case will be funds that the firm can effectively use in the business. This loon is for one year .. What is the effective rate of interest? (Input your answer as a percent rounded to 2 decimal places. Use a 360-day year) Effective rate of interest 16 88% b. What would the effective rate be if Zerox were required to make four quarterly payments to retire the loan? (Input your answer as a percent rounded to 2 decimal places.) Effective rate of interest 96