Question

Cory took out a loan at a 13.5% APR, compounded monthly, to buy a car, and he is making monthly payments to pay off the loan. Which of these interest rates would have allowed Cory to pay off the loan faster?

A. 15.0%, compounded monthly
B. 14.4%, compounded monthly
C. 13.2%, compounded monthly
D. 13.8%, compounded monthly

Answer 1

C. 13.2%, compounded monthly

Explanation:

REmember that the credit loans that are compounded monthly are loans that charge you every month with interests and are added into the debt that you currently have with your bank or financial institution, so the since they are all compounded monthly the one tha will allow to pay faster the loan will be the one that has lower interests rates, so that owuld be 13,2% compounded monthly so that would be the answer.

Answer 2

The lowest interest rate is the one that will allow the loan to be paid fastest (for the same payment amount).
C. 13.2%, compounded monthly