10:011 all LTE QUESTION - PROBLEM 1 Problem 1 - 20 POINTS (approximately 20 mins) Mariam is considering returning to the College. Unfortunately, she does not have enough funds to finance her studies. Mariam is considering obtaining a student loan from a bank She has three options to go with (assume 365 days in a year and 52 weeks in a year): 1. Yellow Bank offers a loan with an APR of 10% compounded daily 2. Green Bank offers a loan with an APR of 11% compounded weekly 3. Red Bank offers a loan with an APR of 12% compounded monthly Mariam approaches you since she does not know which option is best. Help Mariam to determine which option she should choose by calculating a) EAR that Yellow Bank offers (5 points) b) EAR that Green Bank offers (5 points) c) EAR that Red Bank offers (points) Mariam thanks you for help. She is now interested in interest rates subject Recently Mariam read a newspaper stating that National Bank of Kazakhstan decreased base rate from 12% to 9.5% d) Explain what effect decrease of the base rate will have on country's economic growth (you should discuss effects on borrowing by consumers and investment decisions by corporations) (5 points)