16. Ana plans to borrow $5,000 for ten years. There
is an annual interest rate of 3.99%, and three
options are available: [a] Monthly simple
interest; [b] Quarterly compound interest; or [c]
continuous compound interest. Which of option
(a, b, or c) should Ana choose?
[A] Option (c) because she earns the most in
interest ($2,451.67).
[B] Option (b) because she pays the least in
interest ($136.95).
[C] Option (a) because she earns the least in
interest ($258.45).
[D] Option (a) because she pays the least in
interest ($166.25).
[E] Option (c) because she pays the least in
interest ($495.67).