Question: Using this formula please r=2nI/P(N+1) Here, r = Approximate APR n = Number of payment periods in one year (12, if payments are monthly; 52,

Using this formula please

r=2nI/P(N+1) Here, r = Approximate APR n = Number of payment periods in one year (12, if payments are monthly; 52, if weekly) I = Total dollar cost of credit P = Principal, or net amount of loan N = Total number of payments scheduled to pay off the loan Ethan is trying to get a loan for $1,000 and intends to finish paying it off 1 year from today. Option #1 is a loan that costs $15 each week that the loan is still outstanding and must be paid each week along with the principal at the final payment. Option #2 is a loan with equal monthly payments at an annual rate of 98%.

a. What is the total amount of interest paid on option #1?

b. What is the monthly payment for option #2?

c. What is the APR for each option?

d. Which option would you recommend?

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