Question

Waring Bank offers a 5% interest rate on a $4500 loan for a 3-year term. South Bank offers a 5% interest rate on a $4500 loan for a 4-year term. How much more interest will South Bank earn on the $4500 loan with the longer term?

Answer 1

4500 times 5% per year for 3 years = (4500*.05)*3 = answer 1

4500 times 5% per year for 4 years = (4500*.05)*4 = answer 2

Answer 2 minus answer 1 = jackpot