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You decide to borrow $23 000 to do some renovations on your home. You are comparing two options... Option A: Monthly payments for three years at 2.5% financing compounded monthly. Option B: Monthly payments for five years at 3.5% financing compounded monthly. a) What is the monthly payment for Option A [3 marks] b) What is the monthly payment for Option B? [3 marks] c) Give one logical reason for choosing option A and one logical reason for choosing option B. [2 marks]

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hihowareyouk

Answer:

A- One logical reason for choosing option A would be that the total interest paid over the three years would be less compared to option B

resulting in lower overall cost.

B- However, if you choose option B your monthly payments are lower, making it easier to manage finances over a longer period.

Hope this helps- :D

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