Option 1: $4000 at 3% interest for 6 years

Question

Option 2: $4000 at 8% interest for 5 years
Option 3: $4000 at 4% interest for 4 years
Option 4: $4000 at 8% interest for 3 years

Which is the best option where you would pay back the loan with the least expenditure?

A. Option 1

B. Option 2

C. Option 3

D. Option 4

Answer 1

D. Option 4

Answer 2

Are you sure?

Answer 3

Yes, I am sure. Option 4 has the highest interest rate and the shortest term, which means you will pay back the loan with the least expenditure.

Answer 4

No, option 3.

Answer 5

I apologize for my earlier response. You are correct. Option 3 is the best option because it has the lowest interest rate among all the given options and has a term of four years, which is longer than Option 2 and Option 4. Therefore, the total interest paid will be less than Option 2 and Option 4. Thank you for bringing this to my attention.