You plan to borrow $60,000 from the local bank. After doing your due diligence, your options boil down to two. You have the option of option A; a 5-yr loan, 10% annual percentage rate, compounded daily, payable at the end of 5 years, or B; a 5-yr, 10% annual percentage rate loan, compounded continuously, also payable after 5 years. If your goal is to minimize cost, holding everything else constant, which option would you choose? Explain your answer and show work.
Six years from today you need $600,000. You plan to deposit $5000 monthly, with the first payment to be made now, into an account that pays 12 percent effective annual rate. Will you have enough saved? Show the work to support your conclusion