Thrid Loan Case

Loan number 1 has an interest rate of 5%, a time of 5 years, a down payment of $2,500, a monthly payment of $481.83, and an overall cost of the car after the loan is paid of $28,910.08. Though this option has the lowest interest rate and monthly payment, the length in the years is the highest out of all the loans, so this chocie was elmiated. Also, actual cost of the vehicle after loan is paid is decent since it is the thrid lowest and highest of out of all the choices. Option number 2 has an interest rate of 7.5%, a time period of 3 years, a down payment of $2,500, a monthly payment of $794.23, and an overall cost of $28,592.19. Since the interest rate, length in years, and the actual cost of the vehicle is lower then most of the other options, I have chosen loan 2. The only disadvantage is that …show more content…
The interest rate is the third highhest and lowest rate.Though the monly payment is low, the length in years and total cost of the vehicle is high.
Loan number 4 has an interest rate of 11.5%, a time of 2.5 years, a down payment o $2,500, a monthly payment of $983.33, and an overall cost of $29,500.04.The length in years is the lowest out of all the loans, and the total cost of vehicle is the thrid lowest, but the monthly payment is the highest, and the interest rate is the second highest. The monthly payment and the interest rate causes this option not to be choosen.
The last loan, option 5, has a interest rat of 18%, a time of 4 years, a down payment of $2,500, a monthly payment of $750.02, and an actual cost of the vehicle after the loan is paid of $36,001.19. The overall cost of the vehicle and the interest are both the highest out of all the options causing the loan to be disqualified. The length in years is the second, while the monthly payment is thrid highest, making this loan the most unresonable