Question: Simon decides to buy a new sofa which is available at each of three stores at the same fixed price. He decides to borrow the

Simon decides to buy a new sofa which is available at each of three stores at the same fixed price. He decides to borrow the money using each store's credit facility.

Store A has an effective rate of interest of 12.6%.

Store B charges interest at a rate of 10.5% compounded continuously.

Store C charges interest at a rate of 11.5% compounded quarterly.

From which store should Simon buy his sofa to minimize the total cost?

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