Del Hawley, owner of Hawley$$s Hardware, is negotiating with First City Bank for a $1-$year loan of $$100,000.$ 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 $12\%$ annual rate on a simple interest loan, with no compensating balance required and interest due at the end of the year.

$\%$

A $9\%$ annual rate on a simple interest loan, with a $20\%$ compensating balance required and interest due at the end of the year.

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A $8\mathrm{.}75\%$ annual rate on a discounted loan, with a $15\%$ compensating balance.

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Interest figured as $8\%$ of the $$100,000$ 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?

$-$Select$-$