te 14-22 Excelsior Metal's bank offers two borrowing options: (1) a discount interest loan with a quoted rate equal to 8 percent that requires a 20 percent sex compensating balance and (2) a simple interest rb loan with a 10.5 interest rate and no compensating balance. Excelsior tries to maintain a checking account balance close to $0 at the bank. If Excelsior needs a one-year loan, based on the rEAR' which option should it choose? (LO 14-5) In C Ca

-22 Excelsior Metal's bank offers two borrowing options: (1) a discount interest loan with a quoted rate equal to 8 percent that requires a 20 percent compensating balance and (2) a simple interest loan with a 10.5 interest rate and no compensating balance. Excelsior tries to maintain a checking account balance close to $0 at the bank. If Excelsior needs a one-year loan, based on the rEAR which option should it choose? (LO 14-5) -22 Excelsior Metal's bank offers two borrowing options: (1) a discount interest loan with a quoted rate equal to 8 percent that requires a 20 percent compensating balance and (2) a simple interest loan with a 10.5 interest rate and no compensating balance. Excelsior tries to maintain a checking account balance close to $0 at the bank. If Excelsior needs a one-year loan, based on the rEAR which option should it choose? (LO 14-5)