Loan rates of interestPersonal Finance Problem John Flemming has been shopping for a loan to finance the purchase of a used car. He has found three possibilities that seem attractive and wishes to select the one with the lowest interest rate. The information available with respect to each of the three $8,000 loans is shown in the following table, . Each loan requires John to make one payment at the end of each year.

a.Determine the interest rate associated with each of the loans.

b.Which loan should John take?

Question content area bottom

Part 1

a.The interest rate, r, on loan A is enter your response here%. _______________(Round to the nearest whole percent.)

Part 2

The interest rate, r, on loan B is enter your response here%.----------(Round to the nearest whole percent.)

Part 3

The interest rate, r, on loan C is enter your response here%.----------(Round to the nearest whole percent.)

Part 4

b.Which loan should John take?(Select the best answer below.)

A.

Loan A

B.

Loan B

C.

Loan