Question: Shinyoung is considering borrowing $ 1 0 , 0 0 0 for a summer trip throughout Europe. She has narrowed her financing search down to

Shinyoung is considering borrowing $

10, 000

for a summer trip throughout Europe. She has narrowed her financing search down to two options. If she borrows from First National Bank of America, shell have an annual interest rate of

5.5 %,

payable quarterly over six years. If she borrows from American Savings and Trust, shell repay the loan monthly over four years with a

6 %

interest rate.

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