(A) The company needs cash to purchase produce for future sales. (Assume past and future sales/costs are similar.) Bob plans to take a $305,000 loan.

Total cost is 304,897

A1. Is the loan enough to cover total costs?

A2. Bob obtained loan quotations from several banks as follows:

• Bank I offered a loan at 5.8% APR (annual percentage rate) to be paid back in 12 fixed monthly payments.
• Bank II offered a loan to be paid back in 12 fixed monthly payments of $26 thousand each.
• Bank III offered a loan at 5% APR to be paid back in fixed monthly payments of $26,110.
• What is the best offer for Bob? Why?

Explain the functions please

(A) Question	Total
Total Cost
(A) Loan Quotations	Loan	APR	Num. months	payment/month	FV
Bank I
Bank II
Bank II
What is the best loan offer for Bob? Why?