Challenge question I. Michael is shopping for a special automobile. He finds the exact car he wants, a $1966$ dark blue Pontiac GTO. This car is currently the property of a neighbor, so to buy it for the agreed$-$upon price of $$30,000,$ Michael must secure his own financing. He visits four different financial institutions and gets the following available loans:

Bank $1$: $60$ monthly payments of $$611\mathrm{.}89$

Bank $2$: $36$ monthly payments of $$950\mathrm{.}51$

Bank $3$: $312$ weekly payments of $$122\mathrm{.}83($Assume a $52-$week year.$)$

Bank $4$: $16$ quarterly payments of $$2,209\mathrm{.}50$

Which loan should Michael take? Hint: Which loan has the lowest EAR?

If Michael selects Bank $1$ for the loan, what is the periodic interest rate on the loan?

$\%($Round to four decimal places.$)$

If Michael selects Bank $1$ for the loan, what is the EAR on the loan?

$\%($Round to two decimal places.$)$

If Michael selects Bank $2$ for the loan, what is the periodic interest rate on the loan?

$\%($Round to four decimal places.$)$

If Michael selects Bank $2$ for the loan, what is the EAR on the loan?

$\%($Round to two decimal places.$)$

If Michael selects Bank $3$ for the loan, what is the periodic interest rate on the loan?

$\%($Round to four decimal places.$)$

If Michael selects Bank $3$ for the loan, what is the EAR on the loan?

$\%($Round to two decimal places.$)$

If Michael selects Bank $4$ for the loan, what is the periodic interest rate on the loan?

$\%($Round to four decimal places.$)$

If Michael selects Bank $4$ for the loan, what is the EAR on the loan?

$\%($Round to two decimal places$)$

Which loan should Michael take? $($Choose the best response.$)$

A$.$ Bank $1$

B$.$ Bank $3$

C$.$ Bank $4$

D$.$ Bank $2$