Sean needs to borrow $1000 to fly to Europe in the summer. His friend Tim offers him a loan over two years, at an annual interest rate of 4%. He can also borrow the same amount from his bank at an annual rate of 5%, but the loan needs to be paid back in 18 months. In addition, his
cousin offers to loan him the $1000, provided that Sean pay her back $1100 in two years. Which of the following statements is true?