a. Sean buys a refrigerator for $870. The dealer gave him a 2-year add-on interest loan at

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Question:

a. Sean buys a refrigerator for $870. The dealer gave him a 2-year add-on interest loan at 7.8% interest. Find the size of his monthly payment.

b. Will is purchasing a house and is trying to compare two home loans. City Bank offers a loan with an interest rate of 7.58% and APR of 7.69%. Key Bank offers a loan with an interest rate of 7.46% and an APR of 7.69%. Without performing any calculations, Will knows that Key Bank loan has:

Group of answer choices

lower monthly payments, but fees and closing costs are the same

lowers monthly payments, but higher fees and closing costs

none of the given answers (i. e. all other answers are incorrect)

lower monthly payments and lower fees and closing costs higher monthly payments, but lower fees and closing costs