Answer:
a) $4000
b) $2000
Step-by-step explanation:
a)
interest = Principal x rate as decimal x time
interest = 20,000 x 0.05 x 4
interest = 4000
b)
interest = Principal x rate as decimal x time
interest = 20,000 x 0.05 x 2
interest = 2000
you save $2000 if you pay after 2 years
