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amm1812
3 years ago
12

Yvette is considering taking out a loan with a principal of $16,200 from one of two banks. Bank F charges an interest rate of 5.

7%, compounded monthly, and requires that the loan be paid off in eight years. Bank G charges an interest rate of 6.2%, compounded monthly, and requires that the loan be paid off in seven years. How would you recommend that Yvette choose her loan?
Business
2 answers:
nikitadnepr [17]3 years ago
8 0

Answer:

B

Explanation:

zhannawk [14.2K]3 years ago
7 0
<span>Yvette should choose Bank F’s loan if she wants more about lower monthly payments, and she should choose Bank G’s loan if she wants more about the lowest lifetime cost.
</span>
These are the calculations for each bank.

BANK F:
Annual Payments=<span>$210.53
Total Interest=</span><span>$4,011.13

BANK G:
Annual Payments=</span><span>$238.21
Total Interest=</span><span>$3,810.05</span>
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