Question

Consider the following two loans for $P_0=$$$10,000.$

Loan A: $5-$year loan, annual interest rate of $7\%,$ monthly repayments of $$198\mathrm{.}01.$

Loan B: $3-$year loan, annual interest rate of $5\%,$ monthly repayments of $$299\mathrm{.}71.$

On which loan will you pay the least interest?

Select the correct answer below:

Loan A

Loan B