St$.$ Joseph Metals Corporation has four choices for a $$600,000$ eight$-$month loan from a bank. Plan $A$ : A $14\%$ annual interest rate with principal and interest due at the end of the eight months Plan B: A $13\mathrm{.}5\%$ annual interest rate discounted Plan $C$ : A $12\%$ annual interest rate with a $15\%$ compensating balance; interest and principal due at the end of the eight months plan D: A $13\%$ annual interest rate discounted with a $10\%$

compensating balance This firm does not typically keep any funds in this bank. Which one of the four alternatives has the lowest before$-$tax annual percentage cost? Formulus: $I=Prt$

$i=\frac{costof\text{F}\text{i}\text{r}\text{a}\text{n}\text{c}\text{i}\text{n}\text{s}}{N_{e}t\text{P}\text{r}\text{o}\text{c}\text{e}\text{d}\text{s}}$