A man wishes to borrow 锟?0,000 for two years and to repay the loan plus interest at the?

A man wishes to borrow 锟?0,000 for two years and to repay the loan plus interest at the

end of the two years.

Bank A charges interest on loans weekly at the nominal rate of 11% per annum. Bank B

charges interest on loans quarterly at the rate of 3% per quarter. Bank C charges interest

for the first six months with an AER of 3% and for the remaining period with an AER of

15%.

In each case calculate the amount payable at the end of the two year period. Which bank

would you choose for your loan?

A man wishes to borrow 锟?0,000 for two years and to repay the loan plus interest at the?payday loan

Bank A would be the best deal for a loan, charging only 锟?,321 for the privilege of using their money. Total repayment is 锟?2,321.

Bank B and Bank C are fairly close charging ~锟?,667 (for a total of 锟?2,667) and ~锟?,669 (for a total of 锟?2,669) respectively.

cheers