Which of the following one-year $1.000 bank loans offers the lowest effective annual rate? a. Aloan with an APR of 6,4%, compounded monthly b. A loan with an APR of 6.4%, compounded annually, that also has a compensating balance requirement of 10.1% on which no interest is paid) o. A loan with an APR of 4%, compounded annually, that has a 13% loan origination to a. Aloan with an APR of 6.4%. compounded monthly (Select from the drop-down menus) Since the APRIS 6.4%, the monthly rate is This translates to an effective annual rate of b. A loan with an APR of 6.4%, compounded annually, that also has a compensating balance requirement of 101% (on which no interest is paid) (Select from the drop-down menus.) The compensating balance is Therefore, the borrower will have use of only of the $1,000. The interestis The interest rate per period is V. Since this attemate assumes annual compounding the effective annual rate is y as well c. A loan with an APR of 6.4%.compounded annually, that has a 13% loan origination fee (Select from the drop down menus) c. A loan with an APR of 6.4%.compounded annually, that has a 13% loan origination fee (Select from the drop down menus.) The interest expensis and the loan origination for in The loan ongination fee reduces the usable proceeds of the toon to loan. The interest rate per period is Since the loan in compounded annunty in this case. is the offective annual re because it is paid at the beginning of the (Select from the drop-down menu) Thus, alternative V offers the lowest effective annual cost