Which of the following one-year $1,000 bank loans offers the lowest effective annual rate? a. A loan with an APR of 5.8 %, compounded monthly. Since the APR is 5.8 % , the monthly rate is __________%. This translates to an effective annual rate of ________%. b. A loan with an APR of 5.8 %, compounded annually, that also has a compensating balance requirement of 9.8 % (on which no interest is paid). The compensating balance is $________. Therefore, the borrower will have use of only $ _________ of the $1000. The interest is $ ________. The interest rate per period is $ ________. Since this alternative assumes annual compounding, the effective annual rate is ________%. as well. C. A loan with an APR of 5.8 % , compounded annually, that has a 1.1 % loan origination fee. Theinterest expense is $ _____ , and the loan origination fee is $ _____. The loan orgination fee reduces the usable proceeds of the loan to $______ becausee it is paid at the beginning of the loan. The interest rate per period is _____%. Since the loan is compound annually in this case ______% is the effective annual rate.