OUESTIONS $7-8$

You have two options for paying off a loan of $10,000.$

Option A: To pay $400$ at the end of every semester. And two years later the last payment will consist of $400$ plus the loan principal.

Option B: To pay $200$ at the end of every quarter and two years later you'll have to pay not only the $200$ but the loan principal too.

The effective interest rate of the option A and $B$ is:

a$.i_2^A=3\%$ and $i_2^B=2,5\%$

f$.i_2^A=4\%$ and $i_4^B=2\mathrm{.}6\%$

b$.i_2^A=4\%$ and $i_4^B=2\%$

g$.i_2^A=2\mathrm{.}6\%$ and $i_3^B=4\%$

c$.i_2^A=4\%$ and $i_3^B=2\%$

h$.$ None of the above

d$.i_4^A=4\%$ and $i_4^B=2\%$

e$.i_2^A=4\%$ and $i_3^B=2\mathrm{.}5\%$