Question

Shana plans to borrow $1,300 to buy a guitar. One bank is offering a simple interest rate of 5% per year on borrowed amounts. Another bank is offering a simple interest rate of 4%. Shana plans to repay the loan in 3 years. In dollars, how much can she save by borrowing from the bank with the lower interest rate? Record your answer in the box.

Answer 1

Answer:

$39

Step-by-step explanation:

Bank 1-1300*0.05=65, 65*3=195

Bank 2-1300*0.04=156

195-156=39