Short-term financing through bank loans Consider thus case: Taco Large loc needs to take out a one year bank loan of $500,000 and has been offered loan terms by two different banks. One bank has offered a simple interest loan of that requires monthly payments. The loan principal will be paid back at the end of the year, Another bank has offered 5% add on interest to be repaid in 12 equal monthly installment Based on a 360-day year, what will be the monthly payment for each loan for November? (Hint Remember that November has 38 days) Value ry Simple interest monthly payment Add on interest monthly payment Choose the answer that best evaluates the following statement A bank loan olticer has been approached by a start-up company that needs a five year loan to purchase the equipment for its first project. The project will have a ide of five years. At the end of five years, the equipment will be worthless. The founders of the company told the loan officer that they would be willing to pay a much higher interest rate on a simple interest loan rather than contracting to an add-on interest loan The foon officer should offer the company and interest loan because there is a high nk that the company will not be able to pay