Question

2. Your firm is considering two one-year loan options for a $500,000 loan. The first carries fees of 2% of the loan amount and charges interest of 4% of the loan amount. The other carries fees of 1% of the loan amount and charges interest of 4.5% of the loan amount.

Answer 1

If you are able to pay the loan off quickly then go with the second option but if paying the loan off will take a considerable amount of time then go with the first option.
Not sure if that was what you were looking for but that is what I would put