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 she can repay a loan at $1,500 per month for the next 3 years and then $500 per month for three years after that. If the bank is charging customers 10 percent APR, how much would it be willing to lend the business owner?

A) $32,019.95
B) $57,980.57
C) $61,982.47
D) $192,119.70