Question

Two people apply for loans of the same amount. Due to differences in their credit scores, their payments differ by $72 per month. How much more will the person with the lower credit score pay at the end of the 36-month loan?

Answer 1

Answer:

$2592

Explanation:

Let the amount of loan applied for by both person be $x and $y respectively. If their loan differs by $72 each month, the second person would have applied for $(x+72) each month.

Amount applied by first person will be $x at the end of first month

Amount applied by second person will be $(x+72) at the end of first month

At the end of 36 months, the amount applied for by the first man will be $36x

At the end of 36 months, the amount applied for by the second man will be $36(x+72)

First person 'x' =$36x

Second person 'y' = $36(x+72)

If x pays $36x

y will pay $(36x+2592)

Their difference will become

$36x+$2592-$36x

= $2592

The person with the lower credit score will pay $2592 at the end of the 36-month loan