Alejandro needs to borrow $$40,000$ for $4$ years. The loan will be repaid in one

lump sum at the end of the loan term. Which one of the following interest rates

is best for him?

$8\mathrm{.}5$ percent interest, compounded quarterly

$8\mathrm{.}5$ percent interest, compounded monthly

$6\mathrm{.}3$ percent interest, compounded annually

$6\mathrm{.}3$ percent interest, compounded monthly