Question

Stephanie is taking out a loan in the amount of $15,000. Her choices for the loan are a 4-year loan at

Answer 1

Answer:

$1950

Step-by-step explanation:

Simple interest amount payable is given by

A=P(1+rt) where p is principal amount, A is final amount paid, t is time and r is rate of interest. For the first case

A=15000(1+0.03*4)=$16800

For second case

A=15000(1+0.05*5)=$18750

Difference will be 18750-16800=$1950