Question
Suppose that you decide to borrow $17,000 for a new car. You can select one of the following amortized loans, each requiring regular monthly payments.
Suppose that you decide to borrow $17,000 for a new car. You can select one of the following amortized loans, each requiring regular monthly payments.
Installment Loan A: three-year loan at 5.9%
Installment Loan B: five-year loan at 7.2%
Complete parts a. through c. below.
A. Find the monthly payments and the total interest for Loan A.
b. Find the monthly payments and the total interest for Loan B. The monthly payment for Loan B is
The total interest for Loan B is
c. Compare the monthly payments and the total interest for the two loans.
Determine which loan is more economical. Choose the correct answer below.
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Military Finances Personal Money Management For Service Members Veterans And Their Families
Authors: Cheryl Lawhorne-Scott, Don Philpott
1st Edition
144222214X, 978-1442222144
