Jackson took out a 6-year loan for $77,000 at an apr of 10.3%, compounded monthly, while leo took out a 6-year loan for $82,000 at an apr of 10.3%, compounded monthly. who would save more by paying off his loan 10 years early?
a) jackson would save more, because he borrowed $5000 more in principal.
b) jackson would save more, because he borrowed $5000 less in principal.
c) leo would save more, because he borrowed $5000 less in principal.
d) leo would save more, because he borrowed $5000 more in principal.

D) Leo would save more, because he borrowed $5000 more in principal.

Explanation:

I guess the question should say who would save more by paying 1 year earlier, since they are 6-year loans, the concept remains the same.

Leo borrowed $82,000, while Jackson borrowed $77,000. That means that Leo borrowed $5,000  more.

The more you borrow, the higher the interest payment. If both loans have the same APR 10.3% compounded monthly, then the only difference results from the principal amount. Since Leo pays more interest, if he decides to pay the loan earlier, he will save more money.

match the scenarios with terms related to financial aid.

pell grant

student loan

merit-based scholarship

richard is one of the leading college basketball players in the state of florida. he also maintains a good academic record. looking at his talent and potential, furman university offers to bear the expenses for his college education.

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anita wants to pursue a certificate program in sports nutrition. to pay for the course, she borrows money by filing the fafsa.

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nathan comes from a low-income household. he wants to pursue an undergraduate degree in marketing. he receives financial aid covering 50 percent of his college expenses. nathan does not have to pay back this amount.

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