Answered

IDNLearn.com makes it easy to find answers and share knowledge with others. Our experts provide accurate and detailed responses to help you navigate any topic or issue with confidence.

Lin is taking out a loan in the amount of $575. Her choices for the loan are a 7-year loan at 4.5% simple interest and 8-year loan at 3.9% simple interest. What is the difference in the amount of 5% interest Lin would have to pay for each of these nd two loans? (Round to the nearest cent.)

Sagot :

Answer:  $1.73

=======================================

Explanation:

The simple interest formula is

i = P*r*t

that calculates the interest only

---------------

Let's calculate how much interest Lin will pay back if she goes with the 7 year loan at 4.5% simple interest rate.

i = P*r*t

i = 575*0.045*7

i = 181.125

i = 181.13

Repeat for the other loan (8 years, 3.9% simple interest)

i = P*r*t

i = 575*0.039*8

i = 179.40

Subtract the results

181.13 - 179.40 = 1.73

She saves $1.73 if she goes with the second loan.

Your presence in our community is highly appreciated. Keep sharing your insights and solutions. Together, we can build a rich and valuable knowledge resource for everyone. Thank you for choosing IDNLearn.com for your queries. We’re here to provide accurate answers, so visit us again soon.