Neal Wants to Borrow $2,500 and Has Received the Offers

Multiple Choice

Neal wants to borrow $2,500 and has received the offers from his local banks. Which offer should Neal accept if he wants to repay the loan in one single payment two years from now?

A) Bank A, which offers a simple rate of 4%.
B) Bank B, which offers a simple rate of 5%.
C) Bank C, which offers a rate of 4% compounded annually.
D) Bank D, which offers a rate of 5% compounded annually.
E) Bank E, which offers a rate of 5% compounded monthly.