trategies to Reduce Borrowing Quick Check
Use the comparison table to answer the question.
In comparing Truth-in-Lending statements for a home improvement loan, the borrower focuses
on the following
Amount
APR
Borrowed ($) (%)
Finance
Charge ($)
Number of
Payments
Monthly
Payment ($)
Total Cost
($)
Loan
25,000.00
48
3,169.61
60
469.49
28.169.40
A
Loan
25.000.00
5.1
4,779 98
84
354 52 29,779.98
B
Neither loan required a down payment Loan B has a 2% prepayment penalty Neither requires
credit insurance
If the borrower makes a list of the advantages and disadvantages of each potential loan what
advantages would they show for Loan A? Select the two correct answers
