Bill is considering taking out a loan. he estimates that he can afford monthly payments of $375 for 10 years in order to support his loan. he finds that, with an apr of 6.5% compounded monthly, he can take a loan of $33,025.69.
assuming that bill's monthly payment and the length of the loan remain fixed, which of these statements is true about the size of the loan bill could take if he received a different apr?
a. if the interest rate were 7.4%, the amount of the loan that bill is considering taking out would be more than $33,025.69.
b. if the interest rate were 6.8%, the amount of the loan that bill is considering taking out would be less than $33,025.69.
c. if the interest rate were 6.4%, the amount of the loan that bill is considering taking out would be less than $33,025.69.
d. if the interest rate were 7.2%, the amount of the loan that bill is considering taking out would be more than $33,025.69.