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 land the funds at an annual rate of 0.0% subject to a 10.3% compensating balance. (N Weathers currently maintains $0 on deposit in State Bank) Frost Finance Co. has offered to lend the funds at an annual rate of 8.0% with discourt-loan terms. The principal of both loans would be payable at maturity as a single sum a. Calculate the effective annual race of interest on each loan b. What could Weathers do that would reduce the effective annual tale on the State Bank loan a State Bank's semi-annual rate is % (Round to two decimal places.)