Which of the following annual interest rates is least expensive?

An organization needs to borrow a large amount of cash to fund its expansion plan.

Which of the following annual interest rates is least expensive?
A . 7 percent simple interest with a 10 percent compensating balance.
B . 7 percent simple interest paid at the end of each year.
C . 7 percent discount interest.
D . 7 percent compounding interest.

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Answer: B