asked 85.0k views
1 vote
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?A. 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.

B. If the interest rate were 7.2%, the amount of the loan that Brianna is considering taking out would be less than $16,427.72.
C. If the interest rate were 7.8%, the amount of the loan that Brianna is considering taking out would be more than $16,427.72.
D. If the interest rate were 8.2%, the amount of the loan that Brianna is considering taking out would be more than $16,427.72.

asked
User Repzero
by
8.3k points

2 Answers

5 votes

Answer:

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:

apex

answered
User DanM
by
8.5k points
5 votes
Given:
monthly payments of $195 for 10 years in order to support her loan
APR of 7.5% compounded monthly, she can take a loan of $16,427.72

My answer:
A. 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.

pls. see attachments for support.

Brianna is considering taking out a loan. She estimates that she can afford monthly-example-1
Brianna is considering taking out a loan. She estimates that she can afford monthly-example-2
Brianna is considering taking out a loan. She estimates that she can afford monthly-example-3
Brianna is considering taking out a loan. She estimates that she can afford monthly-example-4
Brianna is considering taking out a loan. She estimates that she can afford monthly-example-5
answered
User Keith Barrows
by
8.1k points
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