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Calculate the effective annual cost in % of each option? Question 2: which is better by how much in annual %. (Use the same loan

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Calculate the effective annual cost in % of each option? Question 2: which is better by how much in annual %. (Use the same loan amount for both options) As well in both cases the two companies will only lend you 75% of your receivables. Your receivables are stated at $10.M. Other information is noted below: Loan from Bank Co. Prime rate 29 Field warehouse loan fee $ 100.00 per day Loan rate 29 above prime Final fee at the end $5,000 at loan end 4% Loan from Finance Co. Annual Loan Rate Monthly Processing Fee Monthly Insurance Fee 0.30% 0.05%

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