Question

Joanie takes out a loan from a finance company in order to buy a new car. The following table shows the terms of the loan. What would happen if Joanie put the same amount of money in her savings account, at 2 percent interest, for 48 months?

A. She would save the same amount of money that she spends on the loan

B. She would earn less from her savings account than she spends on the loan.

C. She would earn more from her savings account than she paid on the loan.

D. She would owe more on her car and would not pay off the loan.

Answer 1

Answer is B.