Loan Comparison
Loan 1
Principal $2500.00
Interest
8%
Rate
How much money
will a borrower
8% using Loan 1 pay in
interest over the
life of the loan?
A. $380.00
C. $400.00
Loan 2
$2500.00
Monthly
Payment
Duration 60 months 36 months
$50.00 $80.00
B. $640.00
D. $500.00
