Return to question 2 Problem 8-19 Effective rate under different terms [LO8-2] Zerox Copying Company plans to borrow $202,000. New Jersey National Bank will lend the money at one-half percentage point over the prime rate at the time of 16.50 percent (17 percent total) and requires a compensating balance of 28 percent. The principal in this case will be funds that the firm can effectively use in the business. This loon is for one year, a. What is the effective rate of interest? (nput your answer as a percent rounded to 2 decimal places. Use a 360-day year) Answer is complete but not entirely correct. Efective role of interest 16.40 b. What would the effective rate be if Zerox were required to make four quarterly payments to retire the loon? (Input your answer as a percent rounded to 2 decimal places.) Electie tale of internat