Homework: Homework 7 Question 8, P16-20 (similar to), HW Score: 36.98%,11.1 of 30 points $143,000 initial loan amount. Because it will be liquidated as inventory is sold, the average amount owed over the month is expected to be $103,259. (2) Sun State Bank will lend $143,000 against a floating lien on the book value of inventory for the 1-month period at an annual interest rate of 12.6%. average amount borrowed. Because the loan will be liquidated as inventory is sold, the average loan balance is expected to be $85,800. a. Calculate the dollar cost of each of the proposed plans for obtaining an initial loan amount of $143,000. b. Which plan do you recommend? Why