Ruth Brown wants to borrow $2,600 for 90 days to pay her real estate tax. State Savings
and Loan charges 7.25% ordinary interest while Security Bank charges 7.5 % exact
interest.
(a) What is the interest of each loan?
(b) What is the maturity value of each loan?
(c) What is the maturity value of the loan if it has an ordinary interest?
(d) What is the maturity value of the loan if it has an exact interest?
(e) Where should they borrow the money?