Kristin Simon needs to borrow $4,000. First State Bank will lend her the money for 12 months

Question:

Kristin Simon needs to borrow $4,000. First State Bank will lend her the money for 12 months through a single-payment loan at 8 percent, discount; Home Savings and Loan will make her a $4,000, single-payment, 12-month loan at 10 percent, simple interest. From where should Kristin borrow the money? Explain.