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Grade 8
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Personal Budgeting and Financial Goals
Worksheet
Grade Level
Grade 8
8.84 Personal Budgeting and Financial Goals
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Ben is borrowing $7500 at 6% APR. Option 1: 36 months Option 2: 60 months
Which option usually has the LOWER total cost (total paid) and why?
A
Option 2, because a longer term always costs less overall
B
Option 2, because the monthly payment is lower so total paid is lower
C
Option 1, because paying over fewer months means less interest overall
D
They cost exactly the same because the APR is the same
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