Make a recommendation to tom which loan should he use

Asked by wiki @ 27/10/2021 in Business viewed by 1300 People

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

Answered by wiki @ 27/10/2021

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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