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WITCHER [35]
3 years ago
12

You need to borrow $15,000 to buy a car, and you determine that you can afford monthly payments of $325. The bank offers three c

hoices: a 3-year
loan at 7% APR, a 4-year loan at 7.5% APR, or a 5-year loan a 8% APR. Which loan best meets your needs? Show your work and explain your reasoning.
Mathematics
1 answer:
Klio2033 [76]3 years ago
4 0

Answer:

the 5yr/ $270mth

Step-by-step explanation:

$15k × 8% = $1200 interest

$15k + $1200 = $16,200.00

$16500 ÷ 60months (5years) = $270/mth pymt

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