4. Cost of Bank Loans. Del Hawley, owner of Hawley's Hardware, is negotiating with First City Bank for a 1-year loan of $40,000. First City has offered Hawley the alternatives listed below. Calculate the effective annual interest rate for each alternative. You must show calculations to receive full credit. (6pts) A 11% annual rate on a simple interest loan, with no compensating balance required and interest due at the end of the year. A9% annual rate on a simple interest loan, with a 20% compensating balance required and interest due at the end of the year. An 8.75% annual rate on a discounted loan, with a 15% compensating balance