Michelle Paul has acquired a new computer system at a price of $ 240,000 and is considering two financing alternatives. If National Bank makes the loan, Michelle will make monthly payments of $ 2,545.57 for 10 years to repay the debt. If First State Bank makes the loan, the monthly payments will be $ 2,925.43 for eight years.
A. What is the interest rate charged by National Bank?
B. What is the interest rate charged by First State Bank?
C. What other factors should Michelle take into consideration when deciding which bank to use?