Answer:
Which loan option will have Lilith pay the most amount in interest
loan with a 5.75% annual simple interest rate 24-month loan with a 6.25% interest rate
Interest 3,750
Final payment 33,750
Step-by-step explanation:
1.-Interes rate compouned
Loan 30,000
% 5.75%
Time( Years) 2.50
Interest 4,500
Final payment 34,500
2.-Simple interest
Loan 30,000
% 5.75%
Time( Years) 2.50
Interest 4,313
Final payment 34,313
3.-Simple interest
Loan 30,000
% 6.25%
Time( Years) 2.00
Interest 3,750
Final payment 33,750
4.-Interes rate compouned
Loan 30,000
% 6.25%
Time( Years) 2.00
Interest 3,867
Final payment 33,867
The loan option that will cause Lilith to pay the most interest is a 30-month loan with a 5.75% interest rate compounded annually.
A simple interest is a kind of interest that is charged only on the principal while a compound interest is a kind of interest that is charged both on the principal and the interest.
The loan option that will cause Lilith to pay the most interest is a 30-month loan with a 5.75% interest rate compounded annually.
Learn more about compound interest: https://brainly.com/question/25857212
