Attempts 5. Practice Problem 14-5 eBook State Federal Bank (SFB) offers two borrowing options to businesses: (1) a simple interest loan with a 7 percent interest rate and no compensating balance and (2) a discount interest loan with a quoted rate equal to 6 percent that requires a 15 percent compensating balance. If a firm needs a three- month loan, which option should it choose based on rEAR? Assume the firm normally maintains a negligible checking account balance at the bank. Assume there are 360 days in a year. Do not round Intermediate calculations. Round your answers to two decimal places. Option 1, TEAR: Option 2, TEAR: Based on rEAR, -Select-should be chosen. -Select- Option 1 Option 2 Keep the Highest/3 % Grade it Now Save & Continue Continue without saving