Suppose that you live in a low-income community, and that the government wants to help you by granting you the right to borrow \($120\) at a subsidized interest rate of 6 percent per annum. State which of the following two strategies you would choose and why:

(a) Invest the \($120\) in your family business and obtain a net return of 15 percent per annum, but incur an effort cost equivalent to \($16\), or

(b) deposit the money in a nearby commercial bank that will pay you a yearly rate of 2.5 percent.