Amelia wants to start a side business as a hair stylist and needs $3,000 to purchase tools and products. Her monthly income is $1,700, and her monthly expenses are $800 for rent, $120 for transportation, and $600 for other living expenses. She is deciding between two personal loans: • Loan 1 is for 1 year with a 4% interest rate and a $255.45 monthly payment. • Loan 2 is for 2 years with a 4.8% interest rate and a $131.61 monthly payment. Which loan should Amelia choose and why? O Loan 2 because the monthly payment is $124.10 less than the monthly payment for Loan 1 Loan 1 because the term is 1 year shorter than the term for Loan 2 O Loan 1 because the interest rate is 0.8% lower O Loan 2 because she has only $180 in her monthly budget for the monthly payment

Amelia wants to start a side business as a hair stylist and needs $3,000 to purchase tools and products. Her monthly income is $1,700, and her monthly expenses are $800 for rent, $120 for transportation, and $600 for other living expenses. She is deciding between two personal loans: • Loan 1 is for 1 year with a 4% interest rate and a $255.45 monthly payment. • Loan 2 is for 2 years with a 4.8% interest rate and a $131.61 monthly payment. Which loan should Amelia choose and why? O Loan 2 because the monthly payment is $124.10 less than the monthly payment for Loan 1 Loan 1 because the term is 1 year shorter than the term for Loan 2 O Loan 1 because the interest rate is 0.8% lower O Loan 2 because she has only $180 in her monthly budget for the monthly payment

Algebra and Trigonometry (6th Edition)

6th Edition

ISBN:9780134463216

Author:Robert F. Blitzer

Publisher:Robert F. Blitzer

ChapterP: Prerequisites: Fundamental Concepts Of Algebra

Section: Chapter Questions

Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...

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Question

Amelia wants to start a side business as a hair stylist and needs $3,000 to purchase tools and products. Her monthly income is $1,700, and her monthly expenses are
$800 for rent, $120 for transportation, and $600 for other living expenses. She is deciding between two personal loans:
• Loan 1 is for 1 year with a 4% interest rate and a $255.45 monthly payment.
• Loan 2 is for 2 years with a 4.8% interest rate and a $131.61 monthly payment.
Which loan should Amelia choose and why?
Loan 2 because the monthly payment is $124.10 less than the monthly payment for Loan 1
Loan 1 because the term is 1 year shorter than the term for Loan 2
Loan 1 because the interest rate is 0.8% lower
Loan 2 because she has only $180 in her monthly budget for the monthly payment

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