Step-by-step explanation:
know:
Loan A
Principal
$4500
Interest rate
5%
Time in years
3
If 100% => $4500
5% =>X
X = 5% ร $4500 รท 100% = $225
Loan A = $4500 + $225 = $4725
Loan B
Principal
$4300
Interest
6%
Time in years
3
If 100% => $4300
6% =>X
X = 6% ร $4300 รท 100% = $258
Loan B = $4300 + $258 = $4558
Loan B has the lowest total payback.