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27 July, 10:10

Deanna wants to borrow $8000. Two banks offer a 4-year loan term. One loan has a 5% interest rate, and the other has a 6% interest rate. How much more interest will Deanna pay if she accepts the loan at 6% for the 4-year term?

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  1. 27 July, 12:09
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    I=prt

    I interest earned

    P principle

    R interest rate

    T time

    The difference between I2 and I1

    I2-I1=8,000*0.06*4-8,000*0.05*4

    =320

    Bank 2 will pay 320 more than bank 1
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