Someone needs to borrow $15,000 to buy a car and the person has determined that monthly payments of $300 are affordable. The bank offers a 3-year loan at 6% APR, a 4-year loan at 6.5%, or a 5-year loan at 7% APR. Which loan best meets the person's needs? Explain.
Question content area bottom
Part 1
Which loan best meets the person's needs?
(Round to the nearest cent as needed.)
A.
The 3-year loan best meets the person's needs because the monthly payment of $ enter your response here is less than the maximum budgeted amount of $300 per month.
B.
The 5-year loan best meets the person's needs because the monthly payment of $ enter your response here is less than the maximum budgeted amount of $300 per month.
C.
The 4-year loan best meets the person's needs because the monthly payment of $ enter your response here is less than the maximum budgeted amount of $300 per month.
D.
None of the loans meet the person's needs.
MathBot Answer:
MathBot is working on a solution to your problem.
