Homework: Homework 7 Question 6, P16-13 (similar to HW Score: 0%, 0 of 8 points O Points: 0 of 1 Save Compensating balance versus discount loan Weathers Catering Supply, Inc., needs to bomow $155,000 for 6 months State Bank has offered to lend the funds at an aurate of 80% subject to 10 2% compensating balance (Nove Weathers currently maintains 50 on deposit in State Bank) Frost Finance Co. has effered to lend the funds at an annual rate of 80% with discount loan tema. The principal of both s would be pytle a makety as a unge su a. Calculate the effective annual rate of interest on each loan b. What could Weathers do that would reduce the effective annual rate on the State Bank loan? State Bank's semi-annual rate is %. (Round to two decimal places.)