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.
option 1:repay the loan in 6 months with a 9% APR
option 2:repay the loan in 9 months with a 12% APR
a $66.03
b $135.82
c $126.66
d $60.63
To determine the difference in the total cost of repaying the loan between the two options, we need to calculate the total repayment amount for each option and then subtract the lesser amount from the greater amount.
Option 1: Repay the loan in 6 months with a 9% APR
Using an online loan calculator, the total repayment amount for this option is $2,500 + ( $2,500 * 0.09 * (6/12)) = $2,680.75
Option 2: Repay the loan in 9 months with a 12% APR
The total repayment amount for this option is $2,500 + ( $2,500 * 0.12 * (9/12)) = $2,856.25
Difference: $2,856.25 - $2,680.75 = $175.5
Therefore, the difference in the total cost of repaying a $2,500 easy-access loan between the two payment options is $175.5.
None of the answer choices provided match the calculated difference.