3) Evan needs to borrow $4,000.00 to purchase a Volkswagen beetle. Swifty Car Loans will loan him the money for
6.7% simple interest. Value Bux Dealers will loan him the money for 5.9% compound interest. Evan will make
no payments for four years. Which statement below best describes the situation?
A. Evan should pick Swifty Car Loans because his total cost will be $3,958.88 less than with the other loan
company.
B. Evan should pick Value Bux Dealers because he will pay $41.12 less in interest.
C. Evan should pick Swifty Car Loans because his total cost will be only $5,072.00.
D. Evan should pick Value Bux Dealers because the total cost of his loan will be $4,944.00, which is less than
borrowing from the other loan company’s