Ethan is trying to get a loan for $1,000 and intends to finish paying it off 1 year from today. Option #1 is a loan that costs $15 each week that the loan is still outstanding and must be paid each week along with the principal at the final payment. Option #2 is a loan with equal monthly payments at an annual rate of 98%.

a. What is the total amount of interest paid on option #1?

b. What is the monthly payment for option #2?

c. What is the APR for each option?

If you knew that Ethans loan would be used to start a home business, would you recommend proceeding? Why or why not?