Question

PLEASE ANSWER ASAP

The formula m = 12,000 + 12,000rt 12t gives Keri's monthly loan payment, where r is the annual interest rate and t is the length of the loan, in years. Keri is deciding between two loans, 3 years at 2.49% and 5 years at 5.37%. Give an advantage and a disadvantage of each.

Answer 1

The 3-year loan is cheaper overall.

The 3-year loan’s monthly payment would be higher.

The 5-year loan, is more expensive overall.

The 5-year loan’s monthly payment would be lower.

Answer 2

If keri choose 3 year loan it would be advantage as 3 year loan is cheaper than 5 year loan.

Explanation:

The formula "m = 12,000 + 12,000rt"

r = where "r" is the annual interest rate

t = "t" is the length of the loan, in years.

12t gives Keri's monthly loan payment,

3 year loan interest = 2.49

`\text { 1 year loan interest }=(2.49)/(3)`

"1 year" loan interest = 0.83%

"5 year" loan interest = 5.37%

`1 \text { year loan interest }=(5.37)/(5)`

1 year loan interest = 1.074%

Advantages on 3 year loan:

• The "3 year" loan is cheaper overall.
• The "3 year" loan’s monthly payment would be lower.

Disadvantage on 5 year loan:

• The "5 year" loan’s monthly payment would be higher.

• The "5 year" loan, is more expensive overall.