Identify the variables and assumptions in the below statement.

Nia has started her own business making clothes. Her customers love her designs and in recent

years her business has really grown. Now she wants to open a second location in a nearby city,

but to do that she needs to take out a small business loan from the bank. Nia has calculated

that she needs to take out a loan for GHS $1,800.$

Banks typically apply a fee to process any type of loan. In addition, they also charge a monthly

interest rate and monthly fees until the loan is fully repald. The total amount of interest and

fees charged is expressed as an Annual Percentage Rate $($APR$).$

Nia has the choice of taking out a $2-$year loan for a lower interest rate, or a $4-$year loan for a

higher interest rate. Nia needs to decide which loan would be best for her and her business.