ENGLISH HIGH SCHOOL

ECON: 16. You are offered two loans. The first loan has an APR of 4% and a principal of $25,000, and the second loan has an APR of 3% and a principal of $30,000. Which loan will have the lowest interest charged in the first year?

Answers

Answer 1
Answer:

If someone offered two loans are the lowest interest charged in the first year is the second loan.

What is loan?

A loan is any sum of money, a piece of property, or other tangible item that is given to another party with the understanding that it will be paid back, plus interest, at a later date. A loan was the pay with interest.  Loan was provided by the financial institute.

The first loan has an APR of 4% and a principal of $25,000 interest charged in the first year is $1000. 25,000 x (4)/(100)

The second loan has as APR of 3% and a principal of $30,000 interest charged in the first year is $900. 30,000 x (3)/(100)

As a result, the significance of the loan will have the lowest interest charged in the first year are the aforementioned.

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Answer 2
Answer:

Answer:

A. The second loan will have the lower interest since it will charge $900 in interest the first year, while the first loan will charge $1000 in the first year.

Explanation:

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