you are a small business owner looking to take out a loan to expand your business. you have two options…

you are a small business owner looking to take out a loan to expand your business. you have two options: loan x and loan y.\n\n| |loan x|loan y|\n|--|--|--|\n|interest rate|6.75%|6.55%|\n|apr|7.0%|6.8%|\n|loan term|7 years|5 years|\n|grace period|45 days|30 days|\n\nwhich loan is a better deal?\n\nchoose 1 answer:\n\na loan x\n\nb loan y

you are a small business owner looking to take out a loan to expand your business. you have two options: loan x and loan y.\n\n| |loan x|loan y|\n|--|--|--|\n|interest rate|6.75%|6.55%|\n|apr|7.0%|6.8%|\n|loan term|7 years|5 years|\n|grace period|45 days|30 days|\n\nwhich loan is a better deal?\n\nchoose 1 answer:\n\na loan x\n\nb loan y

Answer

Explanation:

Step1: Analyze interest rate

Loan Y has a lower interest rate (6.55%) compared to Loan X (6.75%).

Step2: Analyze APR

Loan Y has a lower APR (6.8%) compared to Loan X (7.0%).

Step3: Analyze loan term

Loan Y has a shorter loan - term (5 years) than Loan X (7 years), which means less time paying interest.

Step4: Analyze grace period

Loan X has a longer grace period (45 days) but overall, the lower interest - rate, lower APR and shorter loan - term of Loan Y are more important factors.

Answer:

B. Loan Y