Question

A man is looking to borrow $1,000 and finds the 3 options at 3 different banks....

A man is looking to borrow $1,000 and finds the 3 options at 3 different banks. The information below expresses what interest rate each bank is charging for the $1,000 loan, along with the period of time the man will have to repay the loan.


Bank AA: 11%, 6 months
Bank BB: 8%, 9 months
Bank CC: 7%, 12 months

1. Which bank would provide the man the lowest monthly payment? (Bank AA, Bank BB, Bank CC)

2. Which bank provides the man with the lowest dollar amount of interest paid for the length of the loan? (Bank AA, Bank BB, or Bank CC)

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Answer #1

1. lowest monthly payment would be of Bank CC.

2. lowest dollar amount of interest paid for the length of the loan would be of Bank AA.


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