Suppose you decide to purchase a used vehicle for $8,000. You are offered three loan options to finance the vehicle:

Loan A involves financing the $8,000 at 3.95% for 36 months, with payments of $236.01 per month.

Loan B involves financing the $8,000 at 4.5% for 48 months, with payments of $182.43 per month.

Loan C involves financing the $8,000 at 5% for 60 months, with payments of $150.97 per month.

Discussion Questions:

In paragraph form and complete sentences, answer the following questions:

• Consider that the advantages and disadvantages of each loan. Which loan would you choose and why?
• After the loan is completely paid off, how much in total would you have paid for the vehicle?