Hand-to-Mouth (H2M) is currently cash-constrained, and must make a decision about whether to delay paying one of its suppliers, or take out a loan. They owe the supplier $ 12 comma 000$12,000

with terms of 2.42.4/10

Net 40, so the supplier will give them a 2.4 %2.4%

discount if they pay by today (when the discount period expires). Alternatively, they can pay the full $ 12 comma 000$12,000

in one month when the invoice is due. H2M is considering three options:

Alternative A: Forgo the discount on its trade credit agreement, wait and pay the full $ 12 comma 000$12,000 in one month. Alternative B: Borrow the money needed to pay its supplier today from Bank A, which has offered a one-month loan at an APR of 11.8 %11.8%. The bank will require a (no-interest) compensating balance of 5.3 %5.3% of the face value of the loan and will charge a $ 90$90 loan origination fee. Because H2M has no cash, it will need to borrow the funds to cover these additional amounts as well. Alternative C: Borrow the money needed to pay its supplier today from Bank B, which has offered a one-month loan at an APR of 14.6 %14.6%. The loan has a 1.5 %1.5% loan origination fee, which again H2M will need to borrow to cover. Alternative A: The effective annual cost is _%

Alternative B: The effective annual cost is _%

Alternative C: The effective annual cost is _%