ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Harley wants to buy a car that costs $15, 000. Bank One offers her a 3 year loan at a simple interest rate of 9%. Bank Two offers her a 5 year loan at an annual compound interest rate of 3.5%. Which bank offer should she choose?
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She will pay $1, 234.70 less if she chooses Bank Two.
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She will pay $1, 234.70 less if she chooses Bank One.
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She will pay $2, 815.29 less if she chooses Bank One.
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She will pay $2, 815.29 less if she chooses Bank Two.
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Explanation:
There is 1 question to complete.