Question: Question 21 (3 points) You have two options for a loan on your new boat. Loan #1 has a stated APR of 5.5% with an

Question 21 (3 points) You have two options for a loan on your new boat. Loan #1 has a stated APR of 5.5% with an effective rate of 5.70%. Loan #2 has a stated APR of 5.25% with an effective rate of 5.88%. The length of both loans is the same. Which loan would be the best choice? a) Loan #2: It has the lowest APR. b) Loan #1: It has the lowest EAR. Oc) It cannot be determined. d) Loan #1: It has the highest APR. e) Loan #2: It has the highest EAR. Question 22 (3 points) Steve invested $3,600 today. How much will be in his account in 5 years if the account earns 8% annually? a) $2,450.10 b) $5,289.58

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