Question

which is the best estimate of the amount of interest you will save if you take the loan for 2 years instead of 3 years?

Answer 1

SOLUTION

The amount to be saved will be

( $157 for 3 years ) - ( $226 for 2 years )

= ( $ 157 x 36 months) - ( $ 226 x 24 months )

= $ 5652 - $ 5424

= $ 228

= $ 220 .......... OPTION C