Joe is considering taking out a loan with a principal of $15,500 from one of two banks. Bank A
charges an interest rate of 6%, compounded monthly, and requires that the loan be paid off in
eight years, Bank B charges an interest rate of 6.5%, compounded monthly, and requires that
the loan be paid off in seven years. What are the benefits for each bank's offer, in terms of
payment amounts and/or amount paid?
Bank A
Bank B