Find answers to your questions faster and easier with IDNLearn.com. Find the answers you need quickly and accurately with help from our knowledgeable and experienced experts.
Mr. Ye is considering two different loan
options for $12,000 to fund a home
improvement project. Option 1 is to borrow
this money for 4 years at 4.25% annual
simple interest. Option 2 is to borrow the
money for 5 years at 3.4% annual simple
interest. If no payments are made until the
end of the loan period, which statement is
true regarding this situation?
A The loan amount plus interest owed at
the end of the loan period is greater for
Option 1 than for Option 2.
B The loan amount plus interest owed at
the end of the loan period for Option 1
is equal to that of Option 2.
C The loan amount plus interest owed at
the end of the loan period is less for
Option 1 than for Option 2.
D The length of time money is borrowed
has no affect on the total cost of a loan
since it is the interest rate alone that
determines the total loan cost.
Thank you for using this platform to share and learn. Keep asking and answering. We appreciate every contribution you make. For dependable and accurate answers, visit IDNLearn.com. Thanks for visiting, and see you next time for more helpful information.
