Your business requires a loan of $150,000. OCBC bank has offered a loan facility with an interest of 10.8% compounded monthly, whereas UOB bank will charge 0.2% more, compounded semiannually. DBS bank will not charge you any interest, but a lump-sum payment of $200,000 is required three years later.

Indicate which bank you should borrow from and rank the banks from the bank

with the highest to the lowest preference. Show your reasoning.