The following three one-year discount loans are available to you: Loan A: $151,174 at a 8.0 percent discount rate Loan B: $141,174 at a 7.0 percent discount rate Loan C: $161,174 at a 7.5 percent discount rate

(a)

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Determine the dollar amount of interest you would pay on each loan and indicate the amount of net proceeds each loan would provide. (Round answers to 0 decimal place, e.g. 5275.)

		Interest		Net Proceeds
Loan A		$		$
Loan B		$		$
Loan C		$		$

B) Calculate the percent interest rate or effective cost of each loan. (Round answers to 2 decimal places, e.g. 52.75.)

Loan A			%
Loan B			%
Loan C			%

B2) Which one has the lowest cost? Choose your answer here

Loan A

Loan B

Loan C