Stacy is borrowing $5,000 at 4.25% interest for 5 years. She can choose simple interest or compound interest. Which one will all

Question

3 years ago

8

ow her to owe the LEAST amount of money in interest over those 5 years?

2 answers:

natima [27] · Answer 1 · 2022-07-11T12:10:08+03:00

Answer: simple interest rate will afford her the opportunity to owe the least in 5 years

Step-by-step explanation: if she chooses simple interest she will pay 4.25% of $5,000 =$5212.5 every year for 5 years

But compound interest will make her pay 4.25% of $5000 the first year

4.25% of $5212.5 the second year and it keeps increasing till the next 5 years

Tom [10] · Answer 2 · 2022-07-11T11:06:04+03:00

Tom [10]3 years ago

5 0

Answer:

$6062.50

Step-by-step explanation: