Joy is taking out a car loan which she will pay back with interest.which

Joy is taking out a car loan which she will pay back with interest.which option will require her to pay the lowest amount in interest?

2 months ago

Solution 1

Guest Guest #673
2 months ago
The answer is "annual compounding".

With whatever is left of the compoundings she should pay more cash. With a semi-yearly rate she wil need to pay right around 1000 dollars more than in an anual intensifying. With a quarterly period she should pay nearly an indistinguishable sum from a semi-yearly period. Presently with a monthly time span she would need to pay just about 2000 dollars of interest. 

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