ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Johnny need to get a loan to replace the air-conditioning in his home. The cost of the replacement, including installation, is $4, 348.00. He can apply fo a 5-year loan or a 3-year loan. Both loans involve simple interest with an annual interest rate of 6.5%. If Johnny applies for the 5-year loan, how much more will he pay in interest than with the 3-year loan?
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$5, 652.40
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$2, 260.96
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$565.42
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$565.24
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Explanation:
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