please do it WITHIN 15 MIN PLEASE

Q]: Shafi & co. is negotiating with two banks for a Rs. 100,000 loan. Faysal Bank requires a 20 percent compensating balance, discounts the loan, and wants to be paid back in four quarterly payments. Soneri Bank requires a 10 percent compensating balance, does not discount the loan, but wants to be paid back in 12 monthly instalments. The stated rate for both banks is 9 percent. Compensating balances will be subtracted from the Rs. 100,000 in determining the available funds in part 1. 1) Which loan should Shafi 8: co. accept? Marks (2) 2) Re-compute the effective cost of interest, assuming that Shafi & co. ordinarily maintains Rs. 20,000 at each bank in deposits that will serve as compensating balances. Marks (1)