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Alex needs to borrow $40,000 for 5 years. The loan will be repaid in one lump...

Alex needs to borrow $40,000 for 5 years. The loan will be repaid in one lump sum at the end of the loan term. Which one of the following interest rates is best for him? 3.2 percent interest, compounded monthly 4.4 percent interest, compounded monthly 3.2 percent interest, compounded annually 4.4 percent interest, compounded quarterly

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Answer #1

Best option for him: 3.2 percent interest, compounded annually

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