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Challenge question I. Michael is shopping for a special automobile. He finds the exact car he wants, a 1 9 6 6 dark blue Pontiac

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 $787.34
Bank 2: 48 monthly payments of $948.60
Bank 3: 156 weekly payments of $281.35(Assume a 52-week year.)
Bank 4: 24 quarterly payments of $1,996.96
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.)
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