Joy has been saving her earnings to make a down payment on a new car. Which loan terms will result in highest total cost for the loan?

Question

rane · Answer

Okay.  This is what I would do.  For A.  2.5 percent loan for 24 months.  2.5 / 24 = 0.1041666, so A is a 0.1041666 percent loan er month.  Now B, which is a 3.5 percent loan for 36 months.  I do the same thing.  3.5 / 36.  This would be 0.0972222, which is less than A, so that would mean B is not the highest, so keep A and forget about B.  Now for C.  4.5 / 48 = 0.09375.  That is also less than A, so so far it seems that A is winning the compeitition.  Now for D.  5.5 / 60 = 0.0916666 per month.  This is less than A too, so the answer is A.

The answer is A.  2.5 percent loan for 24 months.

mexhitokiri · Answer

D 5.5 percent loan for 60 months is correct.

anonymous · Answer

it is D just took this quiz