Question:

# Candice wants to buy a $2500 scooter with a loan from her local bank. Which loan option would be best for Candice if she wants the lowest interest rate and wants to pay off the scooter within 5 years.

Candice wants to buy a $2500 scooter with a loan from her local bank. Which loan option would be best for Candice if she wants the lowest interest rate and wants to pay off the scooter within 5 years. (1)Loan option 1 will take less than 4 years to pay off and have an annual interest rate of 15%, and total interest of about $700, (2)Loan option 2 will take 3 years to pay off, at which point she will have paid $1,050 in interest. (3)Loan option 3 will take 7 years to pay off, and the total paid for the scooter will be $3200, (4)Loan option 4 will take 5 years to pay off, and the total paid for the scooter will be $3500,