Bank A is offering a loan with a simple interest rate of 8% for 2 years. Bank B is offering a loan with a simple
interest rate of 6. 5% for 3 years
兩
$5400
a. Assuming the monthly payments are equal, what is the monthly payment for the four wheeler from Bank A?
from Bank B?
Bank A: $
Bank B: $
a
b. Give reasons for why a person might choose Bank A and why a person might choose Bank B for a loan to buy
the four wheeler. Explain your reasoning.
