Jake is considering to take out a loan of $10,000 to fund this promotion service. The bank has offered three loan options.

• Option 1: Jake needs to make daily payment of $67 from 1 January 2021 to 31 May 2021 (inclusive).

• Option 2: Jake needs to make monthly payment of $2,028 by end of each month from January 2021 to May 2021 (inclusive)

• Option 3: Jake needs to make five payments by end of each month from January 2021 to May 2021 (inclusive). Jake needs to pay $1,910 for January 2021, $1,950 for February 2021 and March 2021, and $2,170 for April 2021 and May 2021.

  Use Goal Seek to find the implied effective annual rate (i.e., j1) charged by bank for these two three loan options (Assume that there are 365 days in a year.). Which one is better? Use a bar or column chart to compare the loan repayment amount of option 2 and option 3. Plot all payments for option 2 and option 3. Label this sheet as Part d.

Answer rating: 100% (QA)

Loan amoumt 1000000 Daily Payment Starting date Ending d... View the full answer