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Number of Payments
Interest Rate
Amount Borrowed
Monthly Payment
Total Cost of Interest
Creditor A 72 14% $7,500.00 $154.54 $3,626.88
Creditor B 60 14% $7,500.00 $174.51 $2,970.60
Creditor C 48 14% $7,500.00 $204.94 $2,337.12
Slide 1
1. Assume that you are borrowing $7,500.00 and have a choice in the term, or length of the loan. Which term (A, B, or C) will result in the lowest monthly payment?
Source: FairDebtCollection.com
Number of Payments
Interest Rate
Amount Borrowed
Monthly Payment
Total Cost of Interest
Creditor A 72 14% $7,500.00 $154.54 $3,626.88
Creditor B 60 14% $7,500.00 $174.51 $2,970.60
Creditor C 48 14% $7,500.00 $204.94 $2,337.12
Slide 2
2. Which loan term do you predict will result in the lowest interest payment?
Source: FairDebtCollection.com
Number of Payments
Interest Rate
Amount Borrowed
Monthly Payment
Total Cost of Interest
Creditor A 72 14% $7,500.00 $154.54 $3,626.88
Creditor B 60 14% $7,500.00 $174.51 $2,970.60
Creditor C 48 14% $7,500.00 $204.94 $2,337.12
Slide 3
3. Which do you think is the better loan option?
Source: FairDebtCollection.com
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