b) Galore Incorporation requires RM500,000 to finance its operations. The following short- term resources of financing are available: Alternative A loan from Sunbum Bank with a simple interest rate of 9 percent per annum for 3 months. A 20 percent compensating balance is required. Alternative II Issue commercial papers at a face value of RM5,000 per paper. The Interest is 8 percent per annum for 270 days maturity period. The issuing cost is RM150 per paper. Alternative II A revolving line of credit of RM550,000 for a 1 percent commitment fee on the unused funds and an 8 percent interest rate. Calculate the effective interest rate for each alternative. (9 marks) 1) Justify the best alterative for Galore Incorporation. (1 mark)