Question

Brianna is considering taking out a loan. She estimates that she can afford monthly payments of $195 for 10 years in order to support her loan. She finds that, with an APR of 7.5% compounded monthly, she can take a loan of $16,427.72.Assuming that Brianna's monthly payment and the length of the loan remain fixed, which of these statements is true about the size of the loan Brianna could take if she received a different APR?

Answer 1

If the interest rate were 8.4%, the amount of the loan that brianna is considering taking out would be less than $16,427.72

Explanation:

Answer 2

If the interest rate were 8.4%, the amount of the loan that brianna is considering taking out would be less than $16,427.72