Loan Comparison Loan 1 Loan 2 loan 3 Principal 100,000.00 103,000.00 99,000.00 Annual Interest Rate 4.13%...
| Loan Comparison | |||
| Loan 1 | Loan 2 | loan 3 | |
| Principal | 100,000.00 | 103,000.00 | 99,000.00 |
| Annual Interest Rate | 4.13% | 4.05% | 3.70% |
| Number of Monthly Payments | 360 | 400 | 320 |
| Monthly Payment | $484.94 | $469.66 | $487.14 |
| Interest | $344.17 | $347.63 | $305.25 |
| Total Payment | $174,578.50 | $187,862.30 | $155,884.87 |
| Total Interest | $74,578.50 | $84,862.30 | $56,884.87 |
Which one out of the three options on top is the better loan and why?
Homework Answers
Loan 3 is the best option.
Because in this option the interest rate is less as compare to other 2 options so interest payment will be less as compare to other 2 options
Interest liability is lesser than other two options.
Therefore option third is better...
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Loan Comparison
Loan 1
Loan 2
loan 3
Principal
100,000.00
103,000.00
99,000.00
Annual Interest Rate
4.13%...
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