Lamar is considering two loans. loan a loan b principal $4,500 $4,300 interest rate 5% 6% time in years 3 3 which loan will have the lowest total payback? loan a will have the lowest total payback because the amount of interest paid is less. loan a will have the lowest total payback because the total of the principal and the interest paid for loan a is less than the same total for loan
b. loan b will have the lowest total payback because the interest is less than the interest for loan a loan b will have the lowest total payback because the total of the principal and the interest paid for loan b is less than the same total for loan
a.

Loan B will have the lowest total payback because the interest is less than the interest for loan A

Step-by-step explanation:

We have given that :

For loan A                                                 For loan B

Principal(PV) =$4500                                Principal(PV)=$4300

Interest rate(r)= 5%                                    Interest rate(r) =6%

Time(n)= 3 years                                        Time(n)= 3 years

Formula used = loan payment =  

when we put values we get,

loan payment of A= $1652.44  and  B=$1608.67

As we see Loan B will have the lowest total payback because the interest is less than A due to which loan payment of B is lowest.