(Cost of a short-term bank loan) Jimmy Hale is the owner and operator of the groin elevator in Brownfield, Texas, where he has lived for most of Nis 12 years. The ruins during the spring have been the best in a decade, and Mr. Hale is expecting a bumper wheat crop. This has prompted him to rethink his current financing sources. He now believe he will need an additional $200,000 for the 3-month period ending with the dose of the harvest season. Alher meeting with his banker, Mr. Hale is puzzling over what the additional financing will actually cost. The banker quoted him a rate of 2 percent over prime (which is currently 7 percent) and also requested that the firm increase is current bank balance of $4,000 up to 18 percent of the loan a. If interest and principal are all repaid at the end of the 3-month loan form, what is the annual percentage rate on the loan offer made by Mr. Hale's bank? b. If the bank were to offer to lower the rate to prime interest is discounted, should Mr. Hale accept this alternative? Note: Asume a 30-day month and 360-day year. a. The au percentage rate on the loan offer made by Mr. Hale's banki (Round to two decimal places) bit the bank were to offer to lower the rate to primo interest is discounted, the annual percentage rate of Newtomative is C Round to two decimal places) Therefore, Mr. Hale's should this alterative (Select from the drop-down menu.) reject accept