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 $45,000, Michael must secure his own financing. He visits four different financial institutions and gets the following available loans:

Bank 1: 72 monthly payments of $767.21

Bank 2: 36 monthly payments of $1,404.95

Bank 3: 260 weekly payments of $206.46 (Assume a 52-week year.)

Bank 4: 16 quarterly payments of $3,281.53

Solve for all the banks.

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 4 decimals)