Question: Q . 5 Set. ( A ) Assume that you are comparing interest rates on several loans, with different approaches to computing interest. The first

. 5

Set.

(

)

Assume that you are comparing interest rates on several loans, with different approaches to computing interest. The first loan has a stated interest rate of

8 %,

with compounding occurring every month. The second loan has a stated interest rate of

7.8 %,

with compounding occurring every week. The third loan has a stated interest rate of

7.5 %,

with continuous compounding. Which is the cheapest loan?

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