13 Summit Record Company is negotiating with two banks for a $157,000 loan Fidelity Bank requires a compensating balance of 24 percent, discounts the loan, and wants to be paid back in four quarterly payments Southwest Bank roues a compensating balance of 12 percent, does not discount the loan, but wants to be paid back in 12 monthly installments The stated rate for both percent. Compensating balances will be subtracted from the $157000 in determining the available funds in parta a-1. Calculate the effective interest rate for Fidelity Bank and Southwest Bank (Do not round Intermediate calculations. Input your answers as a percent rounded to 2 decimal places.) eBook Effective Rate of Interest 2149 Fidelity Bank Southwest Bank a-2. Which loan should Summit accept? Southwest Bank Fidelity Bank b. Recompute the effective cost of interest, assuming that Summit ordinarily maintains $37680 at each bank in deposits that will serve as compensating balances (Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places) Fidelity Bank Effective Rate of Interest 1582% 1551% South