Answer:
Which loan option will have Lilith pay the most amount in interest
loan with a 5.75% annual simple interest rate 24-month loan with a 6.25% interest rate
Interest 3,750
Final payment 33,750
Explanation:
1.-Interes rate compouned
Loan 30,000
% 5.75%
Time( Years) 2.50
Interest 4,500
Final payment 34,500
2.-Simple interest
Loan 30,000
% 5.75%
Time( Years) 2.50
Interest 4,313
Final payment 34,313
3.-Simple interest
Loan 30,000
% 6.25%
Time( Years) 2.00
Interest 3,750
Final payment 33,750
4.-Interes rate compouned
Loan 30,000
% 6.25%
Time( Years) 2.00
Interest 3,867
Final payment 33,867