Answer to Question #122960 in Finance for Natasha

Question

jon snow requires a loan of $15000. he enquires with three banks, bank A, bank B and bank C. bank A offers J24=6.8%; bank B offers J2=7% and bank C offers J1=6.95%. Which bank should jon get his loan from

Answer 1

Jon should get the loan from the bank that charges the least interest rate. With a lower interest rate, this means that Jon will pay a low interest for the loan.

Therefore, Jon should get the loan from bank A.