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You decide to borrow $23000 to do some renovations on your home. You are comparing two options. Option A: Monthly payments for three years at

You decide to borrow $23000 to do some renovations on your home. You are comparing two options.

Option A: Monthly payments for three years at 2.5% financing compounded monthly.

Option B: Monthly payments for five years at 3.5% financing compounded monthly.

a) What is the monthly payment for Option A?

b) What is the monthly payment for Option B?

c) Give one logical reason for choosing option A and one logical reason for choosing option B.

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