Answer:
option-C
option-D
Step-by-step explanation:
we are given
He estimates that he can afford monthly payments of $265 for 10 years in order to support his loan
so, firstly we will find total amount
[tex]A=265\times 12\times 10[/tex]
[tex]A=31800[/tex]
now, we can verify each options
option-A:
r=6.6% =0.066
Amount is same
[tex]A=31800[/tex]
now, we can use APR formula
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
It is compounded monthly
so, n=12
we can plug it and then we can solve for P
[tex]31800=P(1+\frac{0.066}{12})^{12\times 10}[/tex]
[tex]P=16465.6215[/tex]
we can see that it is less than 24418.05
So, this is FALSE
option-B:
r=6.2% =0.062
Amount is same
[tex]A=31800[/tex]
now, we can use APR formula
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
It is compounded monthly
so, n=12
we can plug it and then we can solve for P
[tex]31800=P(1+\frac{0.062}{12})^{12\times 10}[/tex]
[tex]P=17133.96[/tex]
we can see that it is less than 24418.05
So, this is FALSE
option-C:
r=5.2% =0.052
Amount is same
[tex]A=31800[/tex]
now, we can use APR formula
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
It is compounded monthly
so, n=12
we can plug it and then we can solve for P
[tex]31800=P(1+\frac{0.052}{12})^{12\times 10}[/tex]
[tex]P=18927.00451[/tex]
we can see that it is less than 24418.05
So, this is TRUE
option-D:
r=5.8% =0.058
Amount is same
[tex]A=31800[/tex]
now, we can use APR formula
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
It is compounded monthly
so, n=12
we can plug it and then we can solve for P
[tex]31800=P(1+\frac{0.058}{12})^{12\times 10}[/tex]
[tex]P=17829.66[/tex]
we can see that it is less than 24418.05
So, this is TRUE
