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You are considering taking out one of two loans. Loan R has a principal of $17,550, an interest rate of 5.32%
(compounded monthly), and a duration of seven years. Loan S has a principal of $15,925, an interest rate of 6.07%
(compounded monthly), and a duration of nine years. Assuming that you pay back each in monthly intervals, which loan
will have a greater lifetime total, and how much greater will it be? Round all dollar values to the nearest cent.
a. Loan S's lifetime total will be $1,274.12 greater than Loan R's.
b. Loan S's lifetime total will be $32.99 greater than Loan R's.
c. Loan R's lifetime total will be $350.88 greater than Loan S's.
d. Loan R's lifetime total will be $58.96 greater than Loan S's.
Please select the best answer from the choices provided
A
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