State Federal Bank (SFB) offers two borrowing options to bustnesses: (1) a simple interest loan with a 9 percent interest rate and no compensating balance and (2) a discount interest loan with a quoted rate equal to 8 percent that requires a 20 percent compensating balance. If a firm needs a thi month Ioan, which option should it choose based on ram? Assume the firm normally maintains a negligible checking account balance at the bank. Assume there are 360 days in a year. Do not round intermediate calculations. Round your answers to two decimal piaces. Option 1, reare: Option 2 , reak: Based on rear should be chosen