Question $27$

Project $\text{'}$s time to get serious about taking this taco business to the next level! To do this, the students need some up$-$front capital. The students went to three different banks and were given the following rates on a business loan.

Bank A

Bank B

Bank C

$\backslash (8\mathrm{.}3\backslash \%\backslash )$ compounded monthly

$\backslash (8\mathrm{.}4\backslash \%\backslash )$ compounded annually

$\backslash (7\mathrm{.}5\backslash \%\backslash )$ compounded continuously

Which is the best option? Explain why.

To find the best option, we need to compare the interest, based on the interest rates charged by the banks.

Let's take the loan amount $\backslash (\backslash$$ $100\backslash ).$

For Bank A$,8\mathrm{.}5\backslash \%$ compounded monthly.