How to solve

Compensating balance versus discount loan Weathers Catering Supply, Inc., needs to borrow $$152,000$ for $6$ months. State Bank has offered to lend the funds at an annual rate of $8\mathrm{.}9\%$ subject to a $10\mathrm{.}3\%$ compensating balance. $($Note: Weathers currently maintains $$0$ on deposit in State Bank.$)$ Frost Finance Co$.$ has offered to lend the funds at an annual rate of $8\mathrm{.}9\%$ with discount$-$loan terms. The principal of both loans would be payable at maturity as a single sum.

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?

a$.$ State Bank's semi$-$annual rate is $\%.($Round to two decimal places.$)$