Ed wants to borrow $20,000 from a bank to open a small gym. Three banks charge different interest rates. To help decide the best loan option, Ed wants to know the percent profit he will make each month.

Part A
The cost to run the gym each month is $5,000. Find Ed’s total monthly expenses for each loan option.

Bank
Repayment Period
Average Monthly Sales
Monthly Loan Payment
Total Monthly Expenses
First
1 year
$7,500
$1,792
?
City
1 year
$7,500
$1,803
?
Star
1 year
$7,500
$1,817
?