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Del Hawley, owner of Hawley s Hardware, is negotiating with First City Bank for a 1 - year loan of $ 5 0 , 0

Del Hawley, owner of Hawleys Hardware, is negotiating with First City Bank for a 1-year loan of $50,000. First City has offered Hawley the alternatives listed below. Calculate the effective annual interest rate for each alternative. Do not round intermediate calculations. Round your answers to two decimal places.
A 15% annual rate on a simple interest loan, with no compensating balance required and interest due at the end of the year.
%
A 10% annual rate on a simple interest loan, with a 20% compensating balance required and interest due at the end of the year.
%
An 8.5% annual rate on a discounted loan, with a 15% compensating balance.
%
Interest figured as 9% of the $50,000 amount, payable at the end of the year, but with the loan amount repayable in monthly installments during the year.
%
Which alternative has the lowest effective annual interest rate?
A,B,C or D
Get an answer for every spot there is a % sign

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