Make a recommendation to tom which loan should he use


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Make a recommendation to Tom. Which loan should he use?

Answered by wiki @


Answer:

Tom should take loan option B, the loan with compound interest. Normally, loans with compound interest will result in more interest being paid. In this case, Tom needs to pay close attention to the interest rates that apply. Because the simple interest loan has a rate that is so much higher, it would be wise to choose the compound interest loan.

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