Maggie wants to borrow $60 000 over 15 years to purchase a boat as a surprise gift for her partner. She has researched the following options: Option 1: 8.6% p.a. interest compounded monthly with no establishment fees or monthly service fees. Option 2: 8.3% p.a. interest compounded fortnightly with a service fee of $4 per fortnight. Option 3: 8% p.a. interest compounded weekly with an establishment fee of $300 and a weekly service fee of $8.

a) Calculate the EFFECTIVE comparison rate for each option. Show all your calculations. [16]

b) Which is the best option? Give a reason for your answer.