You Need to Borrow $1 000

You need to borrow $1 000. Bank A will lend you the money at 5% interest, compounded annually, whereas Bank B will lend you the money at 5% interest, compounded monthly. Bank B also offers you a free cell phone, valued at $100, if you do business with them. What is the longest duration of the loan for which Bank B would be a better choice?

A) 10 years
B) 15 years
C) 20 Years
D) 25 years
E) 30 years