Multiple Choice

A farmer is offered two different short-term loan options to finance the growing season.

  • Option A: Borrow 100 monetary units for a 4-month term and repay a total of 126 units.
  • Option B: Borrow 100 monetary units for a 6-month term and repay a total of 139 units.

Based on the simple annual interest rate, which statement accurately compares the two options?

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Updated 2025-08-13

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