In order to finance a shipment of badminton sets Rujisawa Import-Export is see

In order to finance a shipment of badminton sets Rujisawa Import-Export is seeking a $700000 one-year bank loan. The Marine Bank requires that Rujisawa
maintain a 25% compensating balance and requires four quarterly payments. The Lincoln Bank requires only a 15% compensating balance but requires 12 monthly
payments. In addition Lincoln discounts the loan. Both banks state that their interest rate is 8%. a) Which bank has the lowest effective interest rate? (NOTE: deduct the compensating balances from the principal in determining the effective rate) Please
explain

b) If Lincoln Bank eliminated its compensating-balance requirement would your answer change? Please explain.