Question: Challenge question I . Michael is shopping for a special automobile. He finds the exact car he wants, a 1966 dark blue Pontiac GTO. This

Challenge question

Michael is shopping for a special automobile. He finds the exact car he wants, a 1966 dark blue Pontiac GTO. This car is currently the property of a neighbor, so to buy it for the agreed-upon price of $50000 Michael must secure his own financing. He visits four different financial institutions and gets the following available loans:

Bank 1: 36 monthly payments of $1,619.23

Bank 2: 72 monthly payments of $926.29

Bank 3: 260 weekly payments of $247.38 (Assume a 52-week year.)

Bank 4: 16 quarterly payments of $3,886.05

Which loan should Michael take?Hint:Which loan has the lowest EAR?

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