1. Kenneth's Arrows and Bows borrow $6,000 for one year at 9 percent interest. What is the effective rate of interest if the loan is discounted? (Use 360 days in a year.) a. Less than 9.0 percent b. More than 11.0 percent c. More than 9.0 percent, but less than 10.1 percent d. More than 10.1 percent, but less than 11.0 percent.
2. Mr. Jones borrows $1,600 for 90 days and pays $34 interest. What is his effective rate of interest? (Use 360 days in a year. Round your answer to 2 decimal places.) 10.80% 13.20% 9.04% 8.50%.