10. the jacksons are taking out a $35,000 loan to renovate their home. the tables below show the rates for a…

10. the jacksons are taking out a $35,000 loan to renovate their home. the tables below show the rates for a 1 - year and 5 - year loan from two different lenders. complete each table to calculate the total repayment and interest paid for each loan offer. which term length would result in the lowest total repayment for the jackson’s, and how much lower would it be? 16 just tell which year is the lowest.

10. the jacksons are taking out a $35,000 loan to renovate their home. the tables below show the rates for a 1 - year and 5 - year loan from two different lenders. complete each table to calculate the total repayment and interest paid for each loan offer. which term length would result in the lowest total repayment for the jackson’s, and how much lower would it be? 16 just tell which year is the lowest.

Answer

Explanation:

Step1: Calculate total repayment for 1 - year loan

Multiply monthly payment by number of months. For 1 - year loan (12 months), total repayment = monthly payment × 12. $2996.10\times12 = 35953.2$

Step2: Calculate interest for 1 - year loan

Subtract loan amount from total repayment. Interest = total repayment - loan amount. $35953.2−35000 = 953.2$

Step3: Calculate total repayment for 5 - year loan

Multiply monthly payment by number of months. For 5 - year loan (5×12 = 60 months), total repayment = monthly payment × 60. $660.33\times60 = 39619.8$

Step4: Calculate interest for 5 - year loan

Subtract loan amount from total repayment. Interest = total repayment - loan amount. $39619.8−35000 = 4619.8$

Step5: Compare total repayments

Compare total repayment for 1 - year and 5 - year loans. 35953.2 (1 - year) < 39619.8 (5 - year).

Answer:

  1. $35953.2$
  2. $953.2$
  3. $39619.8$
  4. $4619.8$
  5. 1 - year