Compensating balance versus discount loan Weathers Catering Supply, Inc., needs to borrow $150,000 for 6 months State Bank has offered to send the funds at an annual rate of 90% subject to a 100% compensating balance. (Note Weathers currently maintains 50 on deposit in State Bank) Frost Finance Co has offered to lend the funds at an annual rate of 0 with discount.loan terms The principal of both loans would be payable at maturity as a single sum a. Calculate the effective annual rate of interest on each lari b. What could Weathers do that would duce the effective annual rate on the State Bank loan? a. State Bank's semiannual rate is (Round to two decimal places) Compensating balance versus discount loan Weathers Catering Supply, Inc., needs to borrow $150,000 for 6 months State Bank has offered to send the funds at an annual rate of 90% subject to a 100% compensating balance. (Note Weathers currently maintains 50 on deposit in State Bank) Frost Finance Co has offered to lend the funds at an annual rate of 0 with discount.loan terms The principal of both loans would be payable at maturity as a single sum a. Calculate the effective annual rate of interest on each lari b. What could Weathers do that would duce the effective annual rate on the State Bank loan? a. State Bank's semiannual rate is (Round to two decimal places)