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MAXImum [283]
3 years ago
15

Sarah takes out a loan for $30,000. She has two choices for the loan; a 5 year loan with 5% simple interest or a 7 year loan wit

h 4% compound interest. What is the difference in the amount of interest she would owe?
Question 5 options:

$1,189.50


$31,977.95


$1,977.95


$900
Mathematics
2 answers:
aivan3 [116]3 years ago
4 0

Answer:

$1977.95

Step-by-step explanation:

$30000*.05*5=$7500 (simple interest)

$30000*1.04^7=$39477.95-$30000=$9477.95 (compound interest)

$9477.95-$7500.00=$1977.95

PolarNik [594]3 years ago
3 0

Answer:

1977.95

Step-by-step explanation:

i took the test and passed

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