Terry bergolt bank granted him a single payment loan of $4,400 at an intreats rate of 6% exact interest. The term of the loan is
1 answer:
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Answer:
Option A.
Step-by-step explanation:
Clarissa needs a $2,500 loan in order to buy a car.
There are 4 options of loan we will calculate all the options that pay the least amount of interest.
To calculate the interest we will use this formula :
Where P = Principal amount
R = rate of interest
T = time in years
A) Principal 2,500 interest 4.75% and time 18 months (1.5 years)
= $178.125
B) Principal 2,500 interest 4% and time 30 months (2.5 years)
= $250
C) Principal 2,500 interest 4.25% and time 24 months (2 years)
= $212.50
D) Principal 2,500 interest 4.50% and time 36 months (3 years)
= $337.50
The least amount of interest would be in option A.