An American factory needs to arrange financing for its expansion program.
Bank A offers to lend the American factory the required funds on a loan in which interest must be paid at the end of each month, and the stated nominal rate is 13.00% per year.
Bank B offers to lend the required funds on a loan in which interest is continuously compounded and the stated nominal rate is 12.95% per year.
Bank C offers to lend the required funds on a loan in which interest must be paid semi-annually, and the stated nominal rate is 13.10% per year.
Bank D offers to lend the required funds on a loan in which interest must be paid quarterly, and the stated nominal rate is 13.03% per year.
From which of the 4 banks should the American factory obtain financing?
Make sure that you show or explain all calculations. Briefly explain your choice