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Sagot :
Based on the present values of the personal loan of $2,500 at their different duration and interest rates, the cheapest loan is a. Loan A.
Data and Calculations:
Loan Duration (Months) Interest Rate Payments Total Interest
Monthly Total Expense
A 12 9. 50% $219.21 $2,630.51 $130.51
B 24 8. 75% $113.93 $2,734.21 $234.21
C 36 7. 75% $78.05 $2,809.90 $309.90
D 48 6. 60% $59.40 $2,851.33 $351.33
Personal loan amount = $2,500
Thus, Loan A is the cheapest because it has the highest present value and the lowest interest expense.
Learn more about determining the cheapness of loans in the long-run https://brainly.com/question/9028806
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