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Determine the total interest and fees jack

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Jack needs to borrow $1000 for the upcoming year. West Coast Bank will give him a loan at 9 percent. East Coast Bank will give him a loan at 7 percent with a $50 loan origination fee. First Canadian will give him a loan at 6 percent with a $25 loan origination fee. Assume that the interest rate on each loan is compounded monthly. Determine the total interest and fees Jack will be charged in each case. Which loan should he choose?

According to the answer (First Canadian) provided the question utilizes only Effective Yield, is this correct?

Reference no: EM132417183

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