Question

Sarah takes out a loan for $30,000. She has two choices for the loan; a 5 year loan with 5% simple interest or a 7 year loan with 4% compound interest. What is the difference in the amount of interest she would owe?
Question 5 options:

$1,189.50


$31,977.95


$1,977.95


$900

Answer 1

Answer: Is 1,977.95

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