Val is deciding between 3 loans that would each involve her receiving $2,000 today and then paying back the original principal and all accrued interest in 1 year from today. Loan A has an APR of 14.09%, compounded annually. Loan B has an APR of 13.24%, compounded continuously. Loan C has an APR of 13.36%, compounded quarterly. Which of the following assertions is true if Val prefers loans with lower costs more than he prefers loans with higher costs?

1. Val would prefer loan A to loan B and Val would prefer loan A to loan C

2. Val would prefer loan B to loan A and Val would prefer loan C to loan A

3. Val would prefer loan B to loan A and Val would prefer loan A to loan C

4. Val would prefer loan A to loan B and Val would prefer loan C to loan A