Jitensha bike parts was called to testify before the u. s. congress. the ceo of jitensha defended the company against an accusation that it was dumping parts on the u. s. market. in her testimony, the ceo claimed using traditional guidelines, congress determined that jitensha was not dumping.

Carey company is borrowing $225,000 for one year at 9.5 percent from second intrastate bank. the bank requires a 15 percent compensating balance. the principal refers to funds the firm can effectively utilize (amount borrowed − compensating balance). a. what is the effective rate of interest? (use a 360-day year. input your answer as a percent rounded to 2 decimal places.) b. what would the effective rate be if carey were required to make 12 equal monthly payments to retire the loan?