I don't think it's proportional, because in order for a question to be a proportional question has/could be to be like this:
Gasoline costs $2.79 per 2 gallon. How much will it cost for 8 gallon. Then, we cross multiply and all to find the answer.
First, determine the effective interests given both interest rates.
(1) ieff = (1 + 0.068/12)^12 - 1 = 0.07016
(2) ieff = (1 + 0.078/12)^12 - 1 = 0.08085
Calculating the interests will entail us to use the equation,
I = P ((1 + i)^n - 1)
Substituting the known values,
(1) I = ($5125)((1 + 0.07016)^1/2 - 1)
I = $176.737
(2) I = ($5125)(1 + 0.08085)^1/2 - 1)
I = $203.15
a. Hence, the greater interest will be that of the second loan.
b. The difference between the interests,
d = $203.15 - $176.737
$26.413
0.0045, Bc that negative exponent makes the decimal point move to the left!
Answer: It's 72.
Step-by-step explanation: They deleted my answer <:(
