You wish to open a new restaurant and have researched start up fees, which you determine will cost a total of $12,000. During your research, you wish to analyze your loan options to be able to find the best deal for your business.

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You wish to open a new restaurant and have researched start up fees, which you determine will cost a total of $12,000. During your research, you wish to analyze your loan options to be able to find the best deal for your business. Bank 1: This bank offers a simple interest loan at 6.8% for 4 1/2 years. At the end of the 4 1/2 years, the balance can be divided up into equal monthly payments spread across 10 years. Bank 2: This bank offers a simple interest loan at 4.2% for 8 years. At the end of the 8 years, the balance can be divided up into equal monthly payments spread across 12 years.

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