10. Linda Lender at Farmers State Bank is currently determining the loan price for a $200,000 operating loan to Julie and Bill Wallstreet. Linda has compiled the following items as of March 31, 1995: Cost of all debt and equity funds currently in balance sheet 4.7% Cost to acquire debt and equity funds in the market 5.1% Administrative cost 2.2% Risks cost 1.5% Non-loan cost 0.5% Competitor cost 0.1% What interest rate should Linda charge to Julie and Bill using average cost pricing? a. 8.7% b. 9.0% c. 9.05% d. 9.75% What interest rate should Linda charge to Julie and Bill using the marginal cost pricing? a. 8.7% b. 9.05% c. 9.35% d. 9.4%