Asked by Shikur Andeta on Jun 21, 2024
Verified
Miriam and Dave want to borrow $25,000 to put an addition on their house.They went over their budget,and they can afford to pay $450 a month.If the bank offers them a home improvement loan with an APR of 6.3%,what should the length of the loan be so they can afford the monthly payments?
Home Improvement Loan
A type of loan specifically designed to finance repairs, renovations, or improvements to a home.
APR
Annual Percentage Rate; the annual rate charged for borrowing or earned through an investment, inclusive of any fees or additional costs.
Monthly Payments
Regular payments made once a month, often in the context of loan repayments or leasing agreements.
- Evaluate the terms of loans and payment plans to make informed financial decisions.
- Apply mathematical skills to calculate loan duration based on monthly payments and interest rates.
Verified Answer
SD
Learning Objectives
- Evaluate the terms of loans and payment plans to make informed financial decisions.
- Apply mathematical skills to calculate loan duration based on monthly payments and interest rates.