Business, 01.03.2021 18:30 ashleyremon

Rachel needs a car to get to work and school. She's decided on a used car with a cost of $9,000. According to her budget, she can afford to pay up to $275 per month in car payments. Which loan offer is best for Rachel? Length of Loan APR Late Payment Fee Monthly Payment Total Cost of Loan Offer 1 24 months 4.5% $35 $393 $9,428 Offer 2 36 months 5% $20 $270 $9,711 Offer 3 48 months 5.5% $45 $209 $10,047 Offer 4 60 months 6.5% $25 $176 $10,566 Offer 1, because it has the lowest APR and lowest total cost of the loan Offer 2, because it has the lowest total loan cost of the offers with a monthly payment in her budget Offer 3, because a low monthly payment and the lowest late payment fee Offer 4, because it has the lowest monthly payment which frees up her budget for more fun with friends

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the best loan offer for Rachel is Offer 2, because it has the lowest total loan cost of the offers with a monthly payment in her budget.

Explanation:

Note: The data in the question are merged together. They are therefore sorted before answering the question as follows:

Length of APR Late Payment Monthly Total Cost

Loan Fee Payment of Loan

Offer 1 24 months 4.5% $35 $393 $9,428

Offer 2 36 months 5% $20 $270 $9,711

Offer 3 48 months 5.5% $45 $209 $10,047

Offer 4 60 months 6.5% $25 $176 $10,566

The explanation of the answer is now given as follows:

In finance, the best loan offer between or more different loan offers is a loan offer that meets the following 2 conditions:

1. The loan must has the lowest total cost of loan.

2. The periodic payment must be within the budget of the loan beneficiary.

From data in the question, only Offer 2 meets the 2 conditions above.

Therefore, the best loan offer for Rachel is Offer 2, because it has the lowest total loan cost of the offers with a monthly payment in her budget.

Answer from: Quest

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Answer from: Quest

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.

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Rachel needs a car to get to work and school. She's decided on a used car with a cost of $9,000. Acc...

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