Answer to Question #155278 in Financial Math for sulenny acosta

Question

The video suggests you consider these 4 things before deciding to take out a loan: Is it necessary? Do the monthly payments fit in your budget? Could you save instead of borrow? Is it worth the added interest? 

Answer 1

I have decided to take a loan to boost my business, so the loan is necessary.

My monthly payments fit in my budget since I had taken another loan before, and i was able to repay without defaulting.

I can save but it can take some time to accumulate the required funds to boost my business, but once the business do well, I will save for such future plannings.

It is worth the added interest because according to my calculations, part of the profit from the business will clear every month's interest without fail.