Question

Kai needs a car to get to work and school. he's decided on a used car with a cost of $12,000. according to his budget, he can afford to pay up to $300 per month in car payments. which loan offer is best for kai? length of loan apr late payment fee monthly payment total cost of loan offer 1 24 months 4.5% $35 $524 $12,571 offer 2 36 months 5% $20 $360 $12,947 offer 3 48 months 5.5% $45 $279 $13,396 offer 4 60 months 6.5% $25 $235 $14,088 offer 1, because it has the lowest apr and lowest total cost of the loan offer 2, because it has one of the lowest aprs and the lowest late payment fee of all the loan options offer 3, because it has the lowest total loan cost of the offers with a monthly payment in his budget offer 4, because it has the lowest monthly payment and a low late payment fee

Answer 1

The best loan offer for Kai is Offer 1 because it has the lowest APR and total cost of the loan.

Step-by-step explanation:

The best loan offer for Kai in be Offer 1 because it has the lowest APR and lowest total cost of the loan. Offer 1 has a length of 24 months, an APR of 4.5%, a late payment fee of $35, a monthly payment of $524, and a total cost of $12,571.