Question

Ellie wants to buy a computer for $900. She can save $75 a month in a savings account and earn $2 for every $100 saved and buy the computer when she has enough money. Or, she can pay back $75 a month on a bank loan for $900 and pay interest of $7 for every 100 borrowed. How much will she pay for the computer for each of the two choices?

Answer 1

Answer:

For savings: 924$ paid. For loan: 963$ paid