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Mathematics, 27.04.2021 18:30 Apple557

Emma is starting a business in Cape Town and is planning on taking a loan in the amount of 200000 ZAR (South African Rand) to cover her start-up costs. She has loan offers from three different banks. Bank A is offering her a 20-year loan with an annual interest of 7.2%, Bank B is offering her a 15-year loan with an annual interest of 5.3%, and Bank C is offering her a 10-year loan with an annual interest of 3.2%. If she is looking to minimise her monthly payments for the first few years of her business, which loan is the best option?

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