Please show your calculations!

1. Chelsea wants to start her own Christmas ornament business. She can purchase a suitable factory that costs $50,000. Chelsea currently has $150,000 in the bank, earning 3 percent interest per year.

I) [2.0 points] What is Chelsea's cost of purchasing the factory using $100,000 borrowed from a bank at an interest rate of 6 percent?

II) [2.0 points] What is Chelsea's cost of purchasing the factory using $100,000 of her own savings?

III) [1.0 points] If you were Chelsea, would you borrow money from a bank or use your own money? Why?