a. Find the monthly payments and the total interest for Loan A.
The monthly payment for Loan A is $311.97
.
(Do not round until the final answer. Then round to the nearest cent as needed.)
Part 2
The total interest for Loan A is $enter your response here
.
(Round to the nearest cent as needed.)
Part 3
b. Find the monthly payments and the total interest for Loan B.
The monthly payment for Loan B is $167.11
.
(Do not round until the final answer. Then round to the nearest cent as needed.)
Part 4
The total interest for Loan B is $enter your response here
.
(Round to the nearest cent as needed.)
Part 5
c. Compare the monthly payments and the total interest for the two loans.
Determine which loan is more economical. Choose the correct answer below.
A.
The five-year loan at 5.2
%
is more economical.
B.
The three-year loan at 5.5
%
is more economical.
Part 6
The buyer will save approximately $enter your response here
in interest.
(Round to the nearest cent as needed.)
Your question appears to be incomplete as there are no details provided for Loan A and Loan B. Kindly provide the details such as the principal amount and the interest rate as well as the length of the loan term in order for me to be able to calculate the total interest for each loan, compare them and determine which one is more economical.
a. The total interest for Loan A is $1087.04
b. The total interest for Loan B is $402.96
c. The correct answer is B. The three-year loan at 5.5% is more economical.
The buyer will save approximately $684.08 in interest.