Rachel needs a car to get to work and school. She's decided on a used car with a cost of $9,000. According to her budget, she can afford to pay up to $275 per month in car payments. Which loan offer is best for Rachel? Length of Loan APR Late Payment Fee Monthly Payment Total Cost of Loan Offer 1 24 months 4.5% $35 $393 $9,428 Offer 2 36 months 5% $20 $270 $9,711 Offer 3 48 months 5.5% $45 $209 $10,047 Offer 4 60 months 6.5% $25 $176 $10,566 Offer 1, because it has the lowest APR and lowest total cost of the loan Offer 2, because it has the lowest total loan cost of the offers with a monthly payment in her budget Offer 3, because a low monthly payment and the lowest late payment fee Offer 4, because it has the lowest monthly payment which frees up her budget for more fun with friends

Question

01-03-2021
Business

contestada

Rachel needs a car to get to work and school. She's decided on a used car with a cost of $9,000. According to her budget, she can afford to pay up to $275 per month in car payments. Which loan offer is best for Rachel? Length of Loan APR Late Payment Fee Monthly Payment Total Cost of Loan Offer 1 24 months 4.5% $35 $393 $9,428 Offer 2 36 months 5% $20 $270 $9,711 Offer 3 48 months 5.5% $45 $209 $10,047 Offer 4 60 months 6.5% $25 $176 $10,566 Offer 1, because it has the lowest APR and lowest total cost of the loan Offer 2, because it has the lowest total loan cost of the offers with a monthly payment in her budget Offer 3, because a low monthly payment and the lowest late payment fee Offer 4, because it has the lowest monthly payment which frees up her budget for more fun with friends

Respuesta :

Otras preguntas

im sad and depressed because i just got called to the library to get told i didnt mke the team for the battle of the books

uld Carbon Dioxide be at its lowest level? A) July B) April C) January D) Ma What created the weather anomaly in the winter of 1980?

True or false everyone in the colonies could vote

pls pls help whoever gets it right gets a crown

plum-pudding model other name

Location B is which place? Canaan Egypt Syrian Desert Mediterranean Sea

Which of the following functions is most likely to have the smallest value for yifx is large? (Assume & is positive) O a direct variation function with a sm

The amplitude of a mechanical wave shows _____. A. how fast the wave is moving B. how many waves pass a given point in one second C. how many seconds it takes a

To apply for a job at the new store in the mole. is this a fragmentation sentence

Any gïrls here free to talk

amcool amcool · Answer 1 · 2021-03-10T04:00:30+01:00

Answer:

the best loan offer for Rachel is Offer 2, because it has the lowest total loan cost of the offers with a monthly payment in her budget.

Explanation:

Note: The data in the question are merged together. They are therefore sorted before answering the question as follows:

Length of APR Late Payment Monthly Total Cost

Loan Fee Payment of Loan

Offer 1 24 months 4.5% $35 $393 $9,428

Offer 2 36 months 5% $20 $270 $9,711

Offer 3 48 months 5.5% $45 $209 $10,047

Offer 4 60 months 6.5% $25 $176 $10,566

The explanation of the answer is now given as follows:

In finance, the best loan offer between or more different loan offers is a loan offer that meets the following 2 conditions:

1. The loan must has the lowest total cost of loan.

2. The periodic payment must be within the budget of the loan beneficiary.

From data in the question, only Offer 2 meets the 2 conditions above.

Therefore, the best loan offer for Rachel is Offer 2, because it has the lowest total loan cost of the offers with a monthly payment in her budget.