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Lou wants to set up his own landscaping business and needs to borrow $2500 to buy...

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Lou wants to set up his own landscaping business and needs toborrow $2500 to buy equipment. He wants to keep on top of hispayments so he would prefer to pay off the loan on a weekly basis.Option A: 2 year term at 3.99% Option B: 1 year term at 3.99% Whateffect does the term length have on his loan? What should he chooseand why? (Answers will vary) Lou wants to set up his ownlandscaping business and needs to borrow $2500 to buy equipment. Hewants to keep on top of his payments so he would prefer to pay offthe loan on a weekly basis. Option A: 2 year term at 3.99% OptionB: 1 year term at 3.99% What effect does the term length have onhis loan? What should he choose and why? (Answers will vary)

Answer & Explanation Solved by verified expert
4.1 Ratings (749 Votes)
Option A Amount to be borrowed 2500 term of loan 2 years Interest Rate per annum 399 Rate of Interest per week 008 Payment to be made weekely basisin 2 years or 104 weeks Instament amount 2500008100810410081041 Installment    See Answer
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Lou wants to set up his own landscaping business and needs toborrow $2500 to buy equipment. He wants to keep on top of hispayments so he would prefer to pay off the loan on a weekly basis.Option A: 2 year term at 3.99% Option B: 1 year term at 3.99% Whateffect does the term length have on his loan? What should he chooseand why? (Answers will vary) Lou wants to set up his ownlandscaping business and needs to borrow $2500 to buy equipment. Hewants to keep on top of his payments so he would prefer to pay offthe loan on a weekly basis. Option A: 2 year term at 3.99% OptionB: 1 year term at 3.99% What effect does the term length have onhis loan? What should he choose and why? (Answers will vary)

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