The second option has a lower amount of interest paid.
In order to determine the loan option that minimizes loan payment, the future value of both loan options has to be determined.
FV = P (1 + r)^nm
FV = Future value
P = Present value
R = interest rate
m = number of compounding
N = number of years
<em><u>First loan option </u></em>
65000( 1 + 0.063/12)^300 = 312,707.21
<em><u>Second loan option </u></em>
65000( 1 + 0.048/12)^240 = 169,435.51
A similar question was answered here: brainly.com/question/23082103
insert the y value in the equation,
Answer:
the answer is Niece, I can't rlly explain it but its the Niece
let's firstly, convert the mixed fraction to improper fraction, and then subtract.
![\bf \stackrel{mixed}{2\frac{3}{4}}\implies \cfrac{2\cdot 4+3}{4}\implies \stackrel{improper}{\cfrac{11}{4}} \\\\[-0.35em] \rule{34em}{0.25pt}\\\\ \cfrac{11}{4}-\cfrac{2}{3}\implies \stackrel{\textit{our LCD will be 12}}{\cfrac{(3)11-(4)2}{12}}\implies \cfrac{33-8}{12}\implies \cfrac{25}{12}\implies 2\frac{1}{12}](https://tex.z-dn.net/?f=%5Cbf%20%5Cstackrel%7Bmixed%7D%7B2%5Cfrac%7B3%7D%7B4%7D%7D%5Cimplies%20%5Ccfrac%7B2%5Ccdot%204%2B3%7D%7B4%7D%5Cimplies%20%5Cstackrel%7Bimproper%7D%7B%5Ccfrac%7B11%7D%7B4%7D%7D%0A%5C%5C%5C%5C%5B-0.35em%5D%0A%5Crule%7B34em%7D%7B0.25pt%7D%5C%5C%5C%5C%0A%5Ccfrac%7B11%7D%7B4%7D-%5Ccfrac%7B2%7D%7B3%7D%5Cimplies%20%5Cstackrel%7B%5Ctextit%7Bour%20LCD%20will%20be%2012%7D%7D%7B%5Ccfrac%7B%283%2911-%284%292%7D%7B12%7D%7D%5Cimplies%20%5Ccfrac%7B33-8%7D%7B12%7D%5Cimplies%20%5Ccfrac%7B25%7D%7B12%7D%5Cimplies%202%5Cfrac%7B1%7D%7B12%7D)
1/2 + 1/4 + 1/4 + 2/3 = 5/3
mean = 5/3 ÷ 4 = 5/12
