ICICI Bank offers a 1-Year Loan to a company at an interest rate of 20 percent payable at maturity, while Citibank offers on a discount basis at a 19% interest rate for the same period. How much should ICICI Bank decrease/increase the interest rate to match up the effective interest rate of Citibank?

1 Increase by 3.5%

2 Decrease by 1.8%

3 Increase by 1%

4 Decrease by 1.4%