Bank A is offering a loan with a simple interest rate of 8% for 2 years. Bank B is offering a loan with a simple

interest rate of 6. 5% for 3 years

兩

$5400

a. Assuming the monthly payments are equal, what is the monthly payment for the four wheeler from Bank A?

from Bank B?

Bank A: $

Bank B: $

a

b. Give reasons for why a person might choose Bank A and why a person might choose Bank B for a loan to buy

the four wheeler. Explain your reasoning.