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 $1$: $60$ monthly payments of $$787\mathrm{.}34$

Bank $2$: $48$ monthly payments of $$948\mathrm{.}60$

Bank $3$: $156$ weekly payments of $$281\mathrm{.}35($Assume a $52-$week year.$)$

Bank $4$: $24$ quarterly payments of $$1,996\mathrm{.}96$

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.$)$