Mathematics, 08.01.2021 21:00 erik1franks
Sierra is getting a loan to purchase a car, but she has a few options for loan terms. She is comparing the cost of each loan to determine which loan will cost the least in terms of interest paid. (Interest is the fee paid for the use of borrowed money, and it is expressed as a percentage of the amount borrowed. When dealing with simple interest, interest owed is a percentage of the amount borrowed multiplied by the amount of time the borrower takes to repay the loan.) All of the loan offers are for $10,000, and include an upfront fee of $200. They are all simple interest loans (as opposed to compound interest loans). Loan A is to be paid back over five years with an annual interest rate of 6 percent. Loan B is to be paid back over four years with an annual interest rate of 4 percent. Loan C is to be paid back over three years with an interest rate of 5 percent. How can Sierra figure out which loan will require the lowest interest payments?
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Sierra is getting a loan to purchase a car, but she has a few options for loan terms. She is compari...
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