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Someone needs to borrow ​$14,000 to buy a car and the person has determined that monthly payments of ​$250 are affordable. The bank offers a 4​-year loan at 6​% ​APR, a 5​-year loan at 6.5​%, or a 6​-year loan at 7​% APR. Which loan best meets the​ person's needs? Explain.

1 Answer

5 votes

7% at 6 years would best fit their payment option as they would then be paying $238.69 monthly and that is under the $250

User Godice
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