(2) If you need to have $2000 right now to buy a computer and a printer but can repay the loan in 15 months. Since you want to pay as little interest as possible, which type of loan should you take:

(I) a discounted loan at 9% per annum or (II) A simple interest loan at 10%?

(A) (I) at 9% discounted for the lower interest rate than (II) at 10% simple interest rate

(B) I at 9% discounted loan for the lower interest: (I) The interest = L R = 2000 (1 0.09 15/12) = $225 v.s. (II) The simple interest I = 2000 0.1 15/12 = $250

(C) (II) at 10% simple interest it cost me the lower interest: I = 2000 0.10 (15/12) = $250 v.s. (II) L = R/(1 rt) = 2000/(1 0.09 (15/12)) = $2253.52 and I = L R = $253.52

(D) either (I) or (II) would pay the same interest.