Anieta will receive $$35,000$ on her $22$ nd birthday from a trust fund left to her by her grandmother. Anieta is a college student,

and has decided to borrow against the trust fund to cover the costs of tuition, room and board, books, and supplies. Since

she is currently $20$ years old, Anieta will only need a $2-$year loan. The following are the two loan proposals that Anieta is

considering and both require using the trust proceeds as collateral.

Tennessee State Bank will lend $$30,000$ with a $6\%$ discount on interest. The loan principal would be due at the end of two

years. Key Bank will lend $$25,000$ under a $2-$year note. The note would carry a $7\%$ simple interest rate and would aho be due

n a single payment at the end of two years.

If Anieta requests a loan with Tennessee State Bank, a$)$ How much will she receive in loan proceeds? b$)$ What whll sht

be required to pay back at maturity? c$)$ Compute the finance charges and APR on the Tennessee State Bankloan

proposal.

If Anieta requests a loan with Key Bank, a$)$ How much will she receive in loan proceeds? b$)$ What will she be reqt

to pay back at maturity? c$)$ Compute the finance charges and APR on the Key Bank loan proposal.

Compare your findings. Which loan option would you recommend to Anieta? pleasse explain.

SLEM S