Say you need to take out a loan for $1,500. There are two options for repayment: Option A: short-term 6% interest loan with a term of 1 year. Option B: 1-year simple interest amortized loan at 6%...

Say you need to take out a loan for $1,500. There are two options for repayment:

Option A: short-term 6% interest loan with a term of 1 year.

Option B: 1-year simple interest amortized loan at 6% interest, with monthly payments.

What is the
lump sum
payment plan for option A? And what is the
monthly payment for option B?

What formulas did you use and why?