A Small Business Owner Visits His Bank to Ask for a Loan

Multiple Choice

A small business owner visits his bank to ask for a loan. The owner states that he can repay a loan at $1,500 per month for the next three years and then $500 per month for the two years after that. If the bank is charging customers 5.5 percent APR, how much would it be willing to lend the business owner?

A) $4,046.90
B) $59,293.50
C) $24,261.00
D) $66,000.00