Loans, APR, Amortization, and Total Cost of Borrowing | Economics & Financial Literacy Social Studies | Free K12 Practice

12.58 Loans, APR, Amortization, and Total Cost of Borrowing

0%

Skill Level🔴 Hard

00:00

Progress to Next Level25% to Medium

EasyMediumHardMastery100%

A borrower has three loans and $2,000 available for extra repayment: Loan A is $2,000 at 16% APR with no prepayment fee, Loan B is $2,000 at 16% APR with a $75 prepayment fee, and Loan C is $2,000 at 9% APR with no fee. Which extra-payment choice best reduces cost?