Option C with an APR of 1.85% and a $75 fee would provide the lowest cost of borrowing among the given options.
A. APR of 3.45% with $25 fee:
Total cost = (Loan amount * APR) + Fee
Total cost = ($1000 * 0.0345) + $25 = $34.50 + $25 = $59.50
B. APR of 2.75% with $50 fee:
Total cost = (Loan amount * APR) + Fee
Total cost = ($1000 * 0.0275) + $50 = $27.50 + $50 = $77.50
C. APR of 1.85% with $75 fee:
Total cost = (Loan amount * APR) + Fee
Total cost = ($1000 * 0.0185) + $75 = $18.50 + $75 = $93.50
D. APR of 4.5% with $100 fee:
Total cost = (Loan amount * APR) + Fee
Total cost = ($1000 * 0.045) + $100 = $45 + $100 = $145
So, option C with an APR of 1.85% and a $75 fee would provide the lowest cost of borrowing among the given options.