Question

Hello I need help the the bonus question I am not sure if this is a monthly loan or a compound interest problem

Answer 1

Given:

Amount = $12,500

Loan A = 6% annually for 5 years

Loan B = 5.34% annually for 6 years.

Let's find the loan deal which is better.

To find the better loan deal, we have:

• Loan A:

Apply the formula: