Given:
Principal : 7,200
Interest Rate:
Bank M : 3%
Bank K : 4%
Term : 5 years
Interest = Principal * Interest Rate * term
Bank M:
I = 7,200 * 0.03 * 5
I = 1,080
Bank K:
I = 7,200 * 0.04 * 5
I = 1,440
1,440 - 1,080 = 360
Jim will pay 360 more interest if he takes the $7,200 loat at a 4% interest rate for a 5-year term.
Answer:
18 is correct answer .......
Option 1.
is obtained by eliminating the parameter.
Step-by-step explanation:
Step 1:
We have that
and 
Take
as equation 1.
Assume
is equation 2.
We need to determine a value that is equivalent to t so it can be substituted in equation 2.
Step 2:
If we square equation 1, we get

So we have a value that can replace t, so we substitute this is equation 2.
so
which is the first option.
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