Question

Karl is buying a new car. At bank A, a car loan will cost him 11.5 %. At bank B it will cost 12.25%. If he borrows $8,000, how much will he save if he borrows from bank A?

Answer 1

Bank A: 11.5% of $8,000 = $\frac{11.5}{100} \times \ 8000= \ 920$
Bank B: 12.25% of $8,000 = $\frac{12.25}{100} \times \ 8000= \ 980$

He saves $980 - $920 = $60