Essay
Hayley's Theatrical Supply is in the process of negotiating a line of credit with two local banks. The prime rate is currently 8 percent. The terms follow: 
(a) Calculate the effective interest rate of both banks.
(b) Recommend which bank's line of credit Hayley's Theatrical Supply should accept.
Correct Answer:
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(a) 1st National Bank effective cost 
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Correct Answer:
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