Tim needs to borrow $5,000 for two years. The loan (principal and interest) will be...
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Tim needs to borrow $5,000 for two years. The loan (principal and interest) will be repaid in one lump sum at the end of the loan term. Which one of the following interest rates is best for Tim?
a. 7.5 percent simple interest
b. 7.1 percent interest, compounded monthly
c. 7.2 percent simple interest
d. 8.0 percent interest, compounded annually
e. 8.0 percent interest, compounded monthly
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