The Bauer family wants to build a house and needs to take out a loan of €120,000. They get offers for a possible loan agreement from two banks and receive the following information
Bank A offers you to pay off the loan agreement in installments within 4 years at 3.4% per year
Bank b offers to repay the loan amount within 3 years at 3.5% per year
For each of the offers, calculate the annual remaining debt, repayments to be made, interest and annuity.
Which offer is more attractive?