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QUESTION 1 Bank Z offers a$1,000 loan at 9.24% interest paid quarterly. Bank M offers a $1,200 loan at 9.21% interest paid monthly. Which loan

QUESTION 1

Bank Z offers a$1,000 loan at 9.24% interest paid quarterly. Bank M offers a $1,200 loan at 9.21% interest paid monthly. Which loan has the lowest cost?

a.

Bank Z at 9.25% nominal.
b.

Bank Z at 9.58& effective.
c.

Bank M at 9.21% nominal.
d.

Bank M at 9.61% effective.

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