Your firm's bank has offered you two options for short-term financing in the amount of $500,000. The first option is a committed line of credit with a commitment fee of 0.4% (EAR) and an interest rate of 8% (APR, compounded quarterly). The second option is a loan with a 3% compensating balance and an interest rate of 7.6% (APR, compounded quarterly). If you need $485,000 in financing at the beginning of the year and plan to pay it back at the end of the year, which option has a lower effective annual rate of interest?

The EAR of the 8% APR compounded quarterly is ___%(Round to three decimal places.)

The EAR of the 7.6% APR compounded quarterly is __%(Round to three decimal places.)

The effective annual rate of interest for the first option is __%(Round to three decimal places.)

The effective annual rate of interest for the second option is __%(Round to three decimal places.)