What factors should you consider when comparing two loans math homework help

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1.  Suppose you have $10,000 loan @ 5% for 10 years with a $106 monthly payment; you are also offered a 3% loan with a $100 monthly payment  for 10 years. Which is better? Explain. What factors should you consider when comparing two loans. Suppose the 3% loan at $100 monthly payment can be paid in 115 monthly payments? Would this loan be better than the original loan at 5% for 10 years? Explain.

2.  A student had a $20,000 loan at 4% for 10 years. The first payment was $202.49.

a) How much interest and how much principal are paid in the first payment

b) If the interest rate was 8.25% how much more of the first payment would have gone to interest as compared with the 4% loan and $202.49 payment?

How much more total interest would be paid on an 8.25% 10 year loan with a $245.31 monthly payment as compared to the 4%loan and $202.49% payment over the same 10 year period?

 
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