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9) You have recently graduated from university and want to start paying back your loan. The...

9) You have recently graduated from university and want to start paying back your loan. The financial institution you are dealing with has given you 5 options. All else being the same option which option would you choose?

a. One that charges you 3% every 3 months

b. One that charges you 6.1% every 6 months

c. One that charges you 1.0% per month

d. One that charges you 0.2% per week

e. One that charges you 23.0% over 2 years

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Answer #1

IF ANY QUERY, FEEL FREE TO ASK THEM AND GET RESOLVED Solution a. Effective annual rate (1+quarterly rate)4-1 (1+3%)4-1 12.55%

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