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Wilbert needs a student loan to finish school. He needs $4200 and has two options.
Option A: 4 years at 4.5% interest with monthly payments of $95.77
Option B: 3 years at 4.7% interest with monthly payments of $125.31
Which loan should Wilbert choose and how much will Wilbert save with that loan?
First, calculate the total payback on each loan.

Respuesta :

mjmitchell11

Answer:

A) 4596.96

B) 4511.16

Step-by-step explanation:

shubhamchouhanvrVT

Wilbert should choose option B. The savings will be $85.8 for the loan.

What is the loan amount?

The sum you borrow to purchase the home is known as the amount borrowed. Because most lenders don't always offer 100% financing, it usually differs from the purchase price.

It's also crucial to take the loan-to-value ratio into account. Lenders frequently discuss this value, which compared the loan amount with the purchase price.

Checking for 4 years at 4.5% interest with monthly payments of $95.77

4596.96-4200=396.96

Checking for 3 years at 4.7% interest with monthly payments of $125.31

396.96-311.16=85.8

Therefore, Wilbert should choose option B. The savings will be $85.8 for the loan.

To know more about the Loan amount follow

https://brainly.com/question/26011426

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