Rico needs approximately $2,600

2,600 to buy a new computer. Atwo-year unsecured loan through the credit union is available for 11.25

11.25 percent interest. The current rate on his revolving home equity line is 8.00

8.00 percent, although he is reluctant to use it. Rico is in the 15 percent federal tax bracket and the 5.75 percent state tax bracket. Which loan should hechoose? Why? Regardless of the loanchosen, Rico wants to pay off the loan in 24 months. Calculate the monthly payments forhim, assuming both loans use the simple interest calculation method.