bank offers two repayment alternatives for a loan that is to be repaid over sixteen years: Option 1: the borrower pays 7,800 per annum quarterly in arrear, (6 marks) Option 2: the borrower makes payments at an annual rate of 8,200 every second year in arrear. Determine which option would provide the better deal for the borrower at a rate of interest of 5% per annum effective. (6 marks)