1) You need to borrow $10,000 and the following alternatives are available: -
a) Pay $2983 at the end of each year for 5 years, starting at the end of the first year (5 payments total)
b) Pay $237.90 at the end of each month for 5 years, starting at the end of the first month (60 payments total)
On the basis of interest rate, what alternative is superior? Please draw cash flow diagrams.