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 $40,000, Michael must secure his own financing. He visits four different financial institutions and gets the following available loans: Bank 1: 48 monthly payments of $976.52 Bank 2: 72 monthly payments of $716.07 Bank 3: 260 weekly payments of $187.87 (Assume a 52-week year.) Bank 4: 12 quarterly payments of $3,811.48 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? 1% (Round to four decimal places.) If Michael selects Bank 1 for the loan, what is the EAR on the loan? 1% (Round to two decimal places.) If Michael selects Bank 2 for the loan, what is the periodic interest rate on the loan? 1% (Round to four decimal places.) If Michael selects Bank 2 for the loan, what is the EAR on the loan? 1% (Round to two decimal places.) If Michael selects Bank 3 for the loan, what is the periodic interest rate on the loan? 1% (Round to four decimal places.) If Michael selects Bank 3 for the loan, what is the EAR on the loan? 1% (Round to two decimal places.) If Michael selects Bank 4 for the loan, what is the periodic interest rate on the loan? 1% (Round to four decimal places.) If Michael selects Bank 4 for the loan, what is the EAR on the loan? 1% (Round to two decimal places.) Which loan should Michael take? (Choose the best response.) O A. Bank 3 OB. Bank 2 OC. Bank 4 D. Bank 1