Ask Question
4 April, 03:38

Sarah takes out a loan for $30,000. She has two choices for the loan; a 5 year loan with 5% simple interest or a 7 year loan with 4% compound interest. What is the difference in the amount of interest she would owe?

+3
Answers (1)
  1. 4 April, 06:49
    0
    5%

    Total interest paid:

    $5,617.46

    Total payments:

    $35,617.46

    4%

    Total interest paid:

    $4,445.43

    Total payments:

    $34,445.43

    Your Anwser Would Be 1172.03
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Sarah takes out a loan for $30,000. She has two choices for the loan; a 5 year loan with 5% simple interest or a 7 year loan with 4% ...” in 📙 Mathematics if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers