Summit Record Company is negotiating with two banks for a \$157,000 lotin. Fidelity Bank requires a compensating balance of 24 percent, discounts the loan, and wants to be paid back in four quartedy payments. Southwest Bank requires a compensating balance of 12 percent. does not discount the loan, but wants to be paid back in 12 monthly installments. The stated rate for both banks is 9 percent. Compensating belances will be subtracted from the $157,000 in determining the available funds in part a. a-1. Calculate the effective interest rate for Fidelity Bank and Southwest Bank. (Do not round intermediate calculations. Input your onswers os o percent rounded to 2 decimal ploces.) o.2. Which loan should Summit accept? Southwest Bank Fidelity Bank b. Recompute the effective cost of Interest, assuming that Summit ordinarily maintains $37,680 at each bank in deposits that will serve as compensating balances, (Do not round intermediate colculations. Input your answers os a percent rounded to 2 decimal places.) c. Does your choice of banks change if the assumption in part b is correct? Yes No