Question

Darnell is comparing three loan options to determine which one is best for his situation. Match each loan option with the correct description.
Loan Option Principal Amount Monthly Payment Loan Term
option R $14,000 $203.67 72 months
option S $15,000 $256.24 60 months
option T $16,000 $334.43 48 months
option R
option S
option T
This loan option has the lowest finance charge.
arrowRight
This loan option has the highest finance charge.
arrowRight
This loan option has neither the highest finance
charge nor the lowest monthly payment.
arrowRight

Answer 1

Answer:

Option T - Lowest

Option R - Highest

Option S - Neither

Explanation:

Option T $334.43 x 48 = $16,052.64 -- adding $52.64 in interest

Option R $203.67 x 72 = $14,664.24 -- adding $664.24 in interest

Option S $256.24 x 60 = $15,374.4 -- adding $374.4 in interest.

T = $52.64 (Lowest)

R = $664.24 (Highest)

S = $374.4 (Middle)