Answer:
Megan will pay $78 more than Joseph.
Step-by-step explanation:
Formula: Simple Interest = P x R x T
Megan Info
- Borrowed Money (P)=$50,000
- Rate of interest (r)=0.05
- Time (t) = 6 years
Simple interest paid by Megan = 50,000 x 0.05 x 6 = 15000
Total amount paid in 6 years = 50000 + 15000 = $65,000
Monthly payment by Megan (m) = 65000÷72 = $903
Joseph Info
- Borrowed Money (P)=$60,000
- Rate of interest (r)=0.04
- Time (t) = 8 years
Simple interest paid by Magan = 60,000 x 0.04 x 8 = 19200
Total amount paid in 8 years = 60000 + 19200 = $79,200
Monthly payment by Joseph (m) = 79200÷96 = $825
Now we find Difference of monthly payment
⇒Megan - Joseph
⇒ 903-825
⇒ $78
Thus, Megan will pay $78 more than Joseph.
