Robert Inc. Needs to borrow $700,000 in order to finance its new inventory. Two banks in town offered different loan terms. The 1st Bank offered a 10% loan with a 17% compensating balance to be paid in quarterly payments. 2nd Bank offered Robert Inc 13% loan to be paid back semi-annually with no compensation balance required. A) what is the annual interest rate for first bank? ( percentage rounded to 2 decimal places. ex. 33.24%)

B) What is the annual interest rate for second bank? (percentage rounded to 2 decimal places)

c) awhat bank should Robert Inc. borrow from? 1.First bank 2. second bank