A couple needs to get a loan of $5,000 and has to choose

Last updated: 7/21/2022

A couple needs to get a loan of $5,000 and has to choose between three options. Option A: 21% compounded quarterly Option B: 3% compounded every 4 months Option C: 4-1% compounded semi-annually If they make no payments for 5 years, which option will give them the least amount owed after 5 years? Use a mathematical model for each option to explain your choice.