Answer:
Option B is correct
Amount amber will save =$1307
Step-by-step explanation:
The formula of the compound interest is
A = P (1 + r/n)^ (nt)
If she repays a loan in 5 years
P=$5000 (principle amount)
r=8%=0.08 (interest rate )
t=5 (no of years)
n=1 (no of times per year interest is paid)
A=5000(1+0.08/1)^(1(5))
A=5000(1.08)^5
A=5000(1.4693)
A=$7346.6403
formula for interest amount is
I=A-P
I=$7346.6403-$5000
I=$2346.64
If she repays a loan in 3 years
P=$5000 (principle amount)
r=6.5%=0.065 (interest rate )
t=3 (no of years)
n=1 (no of times per year interest is paid)
A=5000(1+0.065/1)^(1(3))
A=5000(1.065)^3
A=5000(1.2079)
A=$6039.7481
formula for interest amount is
I=A-P
I=$6039.7481-$5000
I=$1039.7481
then To find the amount of interest that Amber will save by paying in 3 years we will subtract the amount of interest in 5 years with the amount of interest in 3 years
Interest Amount that amber will save =$2346.64- $1039.7481
=$1306.8918
That will be nearest to $1,307
, is when the profit 
is the highest