Which of the following one-year $1000 bank loans offers the lowest effective annual rate?

A. A loan with an APR of 5.5% compounded monthly?

The EAR for the loan in this case is ___ % (3 decimals)

B. A loan with an APR of 5.5% compounded ANNUALLY with a compensating balance requirement of 10.1% (on which no interest is paid)

the EAR for the loan in this case is ___% (3 decimals)

C. A loan with an APR of 5.5% compounded ANNUALLY with a 0.95% loan origination fee.

The EAR for the loan in this case is __% (3 decimals)

Which bank loan offers the lowest EAR?

a. Loan in part B is the cheapest?

b. Loan in part A is cheapest?

c. Loan in part C is cheapest?

d. The 3 loans are equal