Joan wants to buy a digital tablet costing $1200. So far, she has saved $700. She can obtain a $500 loan from her bank at 12% annual ordinary interest using a 90 day promissory note. She also has inquired at a pay day loan business. There she can borrow $500 at 8% for two weeks. If she needed more time, she would be charged 11% on the balance due for each additional week. Note the 8% and the 11% charged by the pay day loan business are not annual interest. They are the interest rates for the associated time periods. If Jill were to accept the pay day loan and need to take 90 days to repay, which would be a better deal? Is there any point in which taking the pay day loan would make economic sense? What would you recommend that Joan do?