Question

Drag each tile to the correct box.

Darnell is comparing three loan options to determine which one is best for his situation. Match each loan option with the corre
Loan Option
Principal Amount Monthly Payment Loan Term
option R
$14,000
$203.67
72 months
option S
$15,000
$256.24
60 months
option T
$16,000
$334.43
48 months
option R
option S
option T
This loan option has the lowest finance charge.
This loan option has the highest finance charge.
This loan option has neither the highest finance
charge nor the lowest monthly payment.

Answer 1

Option T has the lowest finance charge, Option R has the highest finance charge, and Option S has neither the highest finance charge nor the lowest monthly payment based on the total amount paid over the term of the loan.

Step-by-step explanation:

To determine which loan option has the lowest finance charge, the highest finance charge, and the one with neither the highest nor the lowest monthly payment, we will calculate the total amount paid for each loan and compare them.

Option R: $14,000 principal for 72 months at $203.67 monthly = $14,664.24 total paidTotal finance charge = $14,664.24 - $14,000 = $664.24

• Option S: $15,000 principal for 60 months at $256.24 monthly = $15,374.40 total paid
  Total finance charge = $15,374.40 - $15,000 = $374.40
• Option T: $16,000 principal for 48 months at $334.43 monthly = $16,052.64 total paid
  Total finance charge = $16,052.64 - $16,000 = $52.64

Comparing the finance charges, we can conclude:

• This loan option has the lowest finance charge: Option T
• This loan option has the highest finance charge: Option R
• This loan option has neither the highest finance charge nor the lowest monthly payment: Option S