You borrow $$290,000$; the annual loan payments are $$14,795\mathrm{.}59$ for $30$ years. What interest

rate are you being charged? Round your answer to the nearest whole number.

Bank A pays $2\%$ interest compounded annually on deposits, while Bank B pays $1\mathrm{.}75\%$

compounded daily.

Could your choice of banks be influenced by the fact that you might want to withdraw your

funds during the year as opposed to at the end of the year? Assume that your funds must be

left on deposit during an entire compounding period in order to receive any interest.

If funds must be left on deposit until the end of the compounding period $(1$ year for Bank A and $1$ day

for Bank B$),$ and you have no intentions of making a withdrawal during the year, then Bank B might be

preferable.

If funds must be left on deposit until the end of the compounding period $(1$ yearfor Bank A and $1$ day

for Bank B$),$ and you think there is a high probability that you will make a withdrawal during the year,

then Bank A might be preferable.

If funds must be left on deposit until the end of the compounding period $(1$ year for Bank A and $1$ day

for Bank B$),$ and you think there is a high probability that you will make a withdrawal during the year,

then Bank B might be preferable.