Using an online loan calculator, determine the difference in the total cost of repaying a $2,500 easy access loan between the two payment options shown here.%0D%0AOption 1: Repay the loan in 6 months with a 9% APR.%0D%0AOption 2: Repay the loan in 9 months with a 12% APR.%0D%0A(1 point)%0D%0AResponses%0D%0A%0D%0A$135.82%0D%0A$135.82%0D%0A%0D%0A$66.03%0D%0A$66.03%0D%0A%0D%0A$126.66%0D%0A$126.66%0D%0A%0D%0A$60.63
To determine the total cost of repaying the loan under each option, we need to calculate the monthly payment for each option, and then multiply it by the number of months.
For option 1:
APR = 9%
Loan amount = $2,500
Loan term = 6 months
Using an online loan calculator, we can calculate the monthly payment for option 1, which is $438.22.
Total cost for option 1 = $438.22 x 6 = $2,629.32
For option 2:
APR = 12%
Loan amount = $2,500
Loan term = 9 months
Using the same loan calculator, we can calculate the monthly payment for option 2, which is $308.84.
Total cost for option 2 = $308.84 x 9 = $2,779.56
The difference in the total cost of repaying the loan between the two payment options is $2,779.56 - $2,629.32 = $150.24
Therefore, the correct answer is not provided in the given responses.