Consider the following two loans for

P

$=$

$

$6$

$,$

$000$

$.$

Loan A:

$5$

$-$year loan, annual interest rate of

$5$

$\%$

$.$

Loan B:

$3$

$-$year loan, annual interest rate of

$8$

$\%$

$.$

Assuming the loans require monthly payments, on which loan will you pay the least interest?

Select the correct answer below:

Loan B

Loan A

Both loan require the same amount of interest to be paid.