Question

PLEASE ANSWER ASAP

Answer 1

Answer:

If keri choose 3 year loan it would be advantage as 3 year loan is cheaper than 5 year loan.

Step-by-step explanation:

The formula "m = 12,000 + 12,000rt"

r = where "r" is the annual interest rate

t = "t" is the length of the loan, in years.

12t gives Keri's monthly loan payment,  

3 year loan interest = 2.49

$\text { 1 year loan interest }=\frac{2.49}{3}$

"1 year" loan interest = 0.83%

"5 year" loan interest = 5.37%

$1 \text { year loan interest }=\frac{5.37}{5}$

1 year loan interest = 1.074%

Advantages on 3 year loan:

• The "3 year" loan is cheaper overall.
• The "3 year" loan’s monthly payment would be lower.

Disadvantage on 5 year loan:

• The "5 year" loan’s monthly payment would be higher.

• The "5 year" loan, is more expensive overall.

Answer 2

Answer:

The 3-year loan is cheaper overall.

The 3-year loan’s monthly payment would be higher.

The 5-year loan, is more expensive overall.

The 5-year loan’s monthly payment would be lower.