Your company plans to borrow $$4$ million for $12$ months, and your banker gives you a stated rate of $12$ percent interest. You would like to know the effective rate of interest for the following types of loans.

$($Each of the following parts stands alone.$)$

a$.$ Simple $12$ percent interest with a $10$ percent compensating balance.

b$.$ Discounted interest.

c$.$ Discounted interest with a $5$ percent compensating balance. Must solve written out and not in excel