A person gets a loan to make a $3000 purchase.Which borrowing situation will allow thisperson to pay the loan off in the least amount of time at 0% interest?

To determine which borrowing situation will allow a person to pay off a $3000 loan with 0% interest in the least amount of time, we need to consider several factors including the monthly payment amount, the loan term, and any additional fees or conditions that may apply.

1. Understand Loan Amount and Terms: The total loan amount is $3000. Since there is no interest, the entire amount will need to be paid back.

2. Monthly Payment: To find the time it takes to pay off the loan, we need to look at different monthly payment options. Specifically, the time $T$ to pay off the loan can be calculated by the formula: $T = \frac{\text{Loan Amount}}{\text{Monthly Payment}}$

3. Comparison of Scenarios: Let's compare a few hypothetical monthly payment scenarios:

   • If the monthly payment is $300, then: $T = \frac{3000}{300} = 10 \text{ months}$
   • If the monthly payment is $600, then: $T = \frac{3000}{600} = 5 \text{ months}$
   • If the monthly payment is $1000, then: $T = \frac{3000}{1000} = 3 \text{ months}$

4. Find the Optimal Payment Amount: The higher the monthly payment, the shorter the loan term. Therefore, to pay off the loan in the least amount of time, the person should choose the highest monthly payment they can afford.

Final Answer

Ultimately, the best option to pay off the $3000 loan in the least amount of time at 0$1000 would result in paying off the loan in just 3 months.