Instruction: Analyze each problem and answer all requirements with complete solution. Answers will be submitted on our rst day of class after the community quarantine. Answers and Solutions be written in a separate yellow sheet- I. Effective interest loan rate. Far EastWest Company is arranging for a P500303 one-year loan from People's Bank. The Bank has offered Tribal Hat the following alternatives: a. A 36% interest rate loan, no required compensating balance, and principal plus interest due at the end of the year. b. A 19915 interest rate loan, with 20915 compensating balance, and principal plus interest due at the end of the year. c. A 21915 interest rate loan, with 213-915 compensating balance, and principal plus interest due at the end of the year; We compensating balance earns an interest of 395 per annum. d. A 16915 interest rate loan, with 15915 compensating balance and the interest deducted from the principal at the time of loan release, i.e., discounted. Principal due at the end of the year. e. An 1395 discounted interest rate loan, with 15915 compensating balance, principal due at the end of the year; the compensating balance earns an interest of 9915 per annum. f. An 1895 discounted interest rate loan, with 15915 compensating balance, principal due at the end of the year, the compensating balance earns an interest of 9915 per annum. g. An 1895 discounted interest rate loan, with 15915 compensating balance, principal due at the end ofthe year; the compensating balance earns an interest of 9915 per annum; the company currently maintains a compensating cash balance of P503011 Eeeuited; 1. Calculate the effective interest loan rate for each of the alternatives offered by the bank. 2. Determine the best alternative offered by the bank of which you would recommend to Far East 1IAI'est Company to avail of