Financial Literacy Review

a 3-year loan with an 7% annual simple interest rate.

a 4-year loan with a 5% annual simple interest rate.

a 5-year loan with a 4.5% annual simple interest rate.

a 6-year loan with a 3.7% annual simple interest rate.

The balance in the account has grown only because interest was earned on the account.

The balance in the account has grown only because regular deposits were made to the account.

The balance in the account has grown because regular deposits were made to the account and interest was earned on the previous year's balance.

There is not enough information to determine why the balance in the account has grown.

Loan Option A

Loan Option B

Loan Option C

Loan Option D

First Bank of Trust: $31,500

Valor Bank: $31,000

First Bank of Trust: $41,200

Valor Bank: $36,000

First Bank of Trust: $55,500

Valor Bank: $43,000

First Bank of Trust: $38,566

Valor Bank: $39,000