You head up the interdepartmental design review team for a manufacturer of high- performance motorcycles, and things are not going well at the moment. The design engineers and marketing strategists keep arguing about which should be a higher priority, performance aesthetics, and the accountants say both groups are driving the cost of the new model through the roof by adding too many new features. Everyone has valid points to make, but the team is getting bogged down in conflict. Explain how you could go about resolving the stalemate.

Ummit record company is negotiating with two banks for a $157,000 loan. fidelity bank requires a compensating balance of 24 percent, discounts the loan, and wants to be paid back in four quarterly payments. southwest bank requires a compensating balance of 12 percent, does not discount the loan, but wants to be paid back in 12 monthly installments. the stated rate for both banks is 9 percent. compensating balances will be subtracted from the $157,000 in determining the available funds in part a. a-1. calculate the effective interest rate for fidelity bank and southwest bank. (do not round intermediate calculations. input your answers as a percent rounded to 2 decimal places.) a-2. which loan should summit accept? southwest bank fidelity bank b. recompute the effective cost of interest, assuming that summit ordinarily maintains $37,680 at each bank in deposits that will serve as compensating balances