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.

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.

anonymous · Answer

@rose21

anonymous · Answer

i am really not sure about this question.

rose21 · Answer

The answer is B because she earns 2% interest on the savings but gets charged 9% interest on the loan. She'll spend 7% more than she has is savings.

anonymous · Answer

Are you for sure that the answer is B?

rose21 · Answer

i am positive