You are looking to borrow $25.000 from a Bank to finance the purchase of a new car. Bank A offers you a 2-year amortizing loan at a 8% annual rate with equal payments made monthly at the end of each month. In addition, to these payments, you will need to pay 250 administrative fee immediately.

A) Calculate the amount of each monthly payment.

B) Calculate EAR (Effective Anual Rate) of this loan.

C) Bank B also offers 2-year amortizing loan, with equal payments made at the end of each quarter. Terms and conditions are slightly different. However, the annual interest rate is higher, 8.50%, but there is no upfront fee to pay. Which of the two loans should you choose if you are looking for a cheaper loan) Explain.