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 $1,250 per month for the next 3 years and then $500 per month for two years after that. If the bank is charging customers 12% APR, how much would it be willing to lend the business owner?

A) $45,058.15
B) $45,911.64
C) $46,055.21
D) $46,813.94