A bank makes the following two loan offers to its credit card customers:
Option I: Pay 0% interest for 5 months and then 9% interest compounded monthly for the remainder of the duration of the loan.
Option II: Pay 6% interest compounded monthly for the duration of the loan.
With either option, there will be a minimum payment of $100 due each month. Suppose that you would like to borrow $5500 and pay it back in a year and a half. For which option do you pay the least amount to the bank?