You are offered two loans. The first loan has an APR of 4%and a principal of$25,000, and the second loan has an APR of 3%and a principal of $30,000. Which loan will have the lowest interest charged in the first year? Explain.

The second loan will have the lower interest since it will charge$800in interest the first year, while the first loan will charge$1200 in the first year.

The second loan will have the lower interest since it will charge$900in interest the first year, while the first loan will charge$1000 in the first year.

The first loan will have the lower interest since it will charge$800 in interest the first year, while the second loan will charge$1200 in the first year.

The first loan will have the lower interest since it will charge$900 in interest the first year, while the second loan will charge$1000 in the first year.