Question

Pls help me!! Worth 50 points and will give brainliest

Answer 1

A) 2 years at 3% interest = $10,617.57

Step-by-step explanation:

loan amount (P) = $10,000

interest is compound monthly :

A = P (1 + r/n)^n*t

find:

which of these loan terms will have the lowest total cost?

A) 2 years at 3% interest

B) 3 years at 3% interest

C) 4 years at 3% interest

D) 5 years at 3% interest

solution:

plugin the values into the formula to get the accumulated monthly interest.

A.   using 2 years at 3% interest

A = $10,000 ( 1 + 0.03 ) ¹² ˣ ²

                              12

  = $10,617.57

B.   using 3 years at 3% interest

A = $10,000 ( 1 + 0.03 ) ¹² ˣ ³

                               12

  = $10,940.51

C.   using 4 years at 3% interest

A = $10,000 ( 1 + 0.03 ) ¹² ˣ ⁴

                               12

  = $11.273.28

D.   using 5 years at 3% interest

A = $10,000 ( 1 + 0.03 ) ¹² ˣ ⁵

                               12

  = $11,616.17

therefore, based on the above terms, option A which is $10,617.57

                has the lowest accumulated monthly interest. (total cost)

Answer 2

Answer:

A) 2 years at 3% interest = $10,617.57

Step-by-step explanation:

loan amount (P) = $10,000

interest is compound monthly :

A = P (1 + r/n)^n*t

find:

which of these loan terms will have the lowest total cost?

A) 2 years at 3% interest

B) 3 years at 3% interest

C) 4 years at 3% interest

D) 5 years at 3% interest

solution:

plugin the values into the formula to get the accumulated monthly interest.

A.   using 2 years at 3% interest

A = $10,000 ( 1 + 0.03 ) ¹² ˣ ²

                               12

   = $10,617.57

B.   using 3 years at 3% interest

A = $10,000 ( 1 + 0.03 ) ¹² ˣ ³

                                12

   = $10,940.51

C.   using 4 years at 3% interest

A = $10,000 ( 1 + 0.03 ) ¹² ˣ ⁴

                                12

   = $11.273.28

D.   using 5 years at 3% interest

A = $10,000 ( 1 + 0.03 ) ¹² ˣ ⁵

                                12

   = $11,616.17

therefore, based on the above terms, option A which is $10,617.57

                 has the lowest accumulated monthly interest. (total cost)