3. XYZ Company is in need of short-term funds amounting to P600,000 to cover its operating requirements for one year or less. Two bank are willing to provide the much-needed funds with different terms as follows: Bank 1: Term is 120 days at 15% simple interest. Bank 2: Term is 60 days at 14.5 % simple interest. Compute the following: a. b. Effective cost of borrowing of each bank. Which ter more favorable as a source of funds? Discuss your answer briefly.