The furniture store will finance the purchase of a new dining room table. It offers two options. The first option is 7% loan for a two year period with monthly payments of
$223.86. The second option is a 36 month loan at 8% with monthly payments of
$156.68. Which option has the lower cost of credit?

The first option by $267.84.
The second option by $267.84.
The second option by $156.68.
The cost of credit is the same for both options.