Select the best loan terms from the banks below.The firm needs to obtain $500,000 in cash:
Bank A: 10% stated rate, 20% compensating balance that earns no interest.
Bank B: 12.5% stated rate, no compensating balance.
Bank C: 11% stated rate, 15% compensating balance that earns 2.5% interest.

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The Answer of Select the best loan terms from the banks below.The firm needs to obtain $500,000 in cash:
Bank A: 10% stated rate, 20% compensating balance that earns no interest.
Bank B: 12.5% stated rate, no compensating balance.
Bank C: 11% stated rate, 15% compensating balance that earns 2.5% interest.

Select the Best Loan Terms from the Banks Below