QuestionBea can spend $\$ 200$ monthly on a $\$ 22,500$ loan at $6\%$. Check if 12-year or 20-year loans fit her budget.

Studdy Solution
Repeat steps10 and11 for the second loan option.
$$Monthly\, payment = \$23,850 / (20 \\times12)$$$$Monthly\, payment = \$23,850 /240 = \$99.38$$Both loan options fit within Bea's budget of $200 per month.