Sales Force borrowed $150 million for 360 days from Chase bank. The interest on the loan is 10 percent. Sales Force has no cash balances in its accounts with Chase at the time of this loan. Calculate the APR and rEAR assuming the loan is a simple interest loan and has a 20% compensating balance requirement.

Group of answer choices

APR = 12.5% and rEAR = 14.1%

APR = 10% and rEAR = 12.5%

APR = 12.5% and rEAR = 12.5%

None of the above