Michael is shopping for a special automobile. He finds the exact car he? wants, a 1966 dark blue Pontiac GTO. This car is currently the property of a? neighbor, so to buy it for the? agreed-upon price of $30,000, Michael must secure his own financing. He visits four different financial institutions and gets the following available? loans:
Bank? 1: 48 monthly payments of $739.45
Bank? 2: 36 monthly payments of $940.09
Bank? 3: 312 weekly payments of ?$121.98 ?(Assume a? 52-week year.)
Bank? 4: 20 quarterly payments of ?$1,868.07
What is the periodic interest rate on each loan? And...
Which loan should Michael? take?
?Hint: Which loan has the lowest? EAR?