Sally is preparing to negotiate a home loan to be repaid monthly. He wants to borrow $350000 for 20 years. He has identified 2 possible loans to choose from: - Loan 1 has an interest rate of 5.98%p.a. compounded monthly. There are no other fees or charges. - Loan 2 has an interest rate of 5.60%p.a. compounded monthly. There is a monthly account keeping fee of $8 and a set up fee of $150.

a. Calculate the comparison rate for each loan option. Loan 1 comparison rate = Answer % (2 decimal places)

Loan 2 comparison rate = Answer % (2 decimal places)

b. Hence, Sally should choose Answer ( Loan 1 or 2)