Question

Sierra is getting a loan to purchase a car, but she has a few options for loan

comparing the cost of each loan to determine which loan will cost the least in terms of interest
paid. (Interest is the fee paid for the use of borrowed money, and it is expressed as a
percentage of the amount borrowed multiplied by the amount of time the borrower takes to
repay the loan.) All of the loan offers are for $10,000, and include an upfront fee of $200. They
are all simple interest loans (as opposed to compound interest loans). Loan A is to be paid back
over five years with an annual interest rate of 6 percent Loan B is to be paid back over four
years with an annual interest rate of 4 percent. Loan C is to be paid back over three years with
an interest rate of 5 percent. How Sierra figure out which loan will require the lowest interest
payments?

Answer 1

Answer:What would be the interest cost(simple interest) for a $3000 loans with a 8% rate for nine months of a years? [Simple interest= Principal Rate Time. In this case, time is 9/12(for 0.75 of a year).

Step-by-step explanation: The cost to borrow the money, expressed as a percentage of the loan. After you enter the details, the auto loan payment calculator automatically ...A finance charge is the dollar amount that the loan will cost you. Lenders generally charge what is known as simple interest. The formula to calculate ...