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22 June, 16:06

The following loan options are available from a local financial institution

Loan A £20,000 borrowed for 5 years @ 8% interest rate

Loan B £20,000 borrowed for 7 years @ 6% interest rate

Which one of these would be the best and why?

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  1. 22 June, 17:42
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    Loan A @ E80,000, What you do is multiply 20,000 by 8%, then multiply that answer by 60, because there are 12 months in a year so 12 * 5 = 60. It is cheaper than B @ E100,800
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