Sue can either borrow 10,000 dollars for 5 years with a simple interest of 8% annually or an interest which compounds annually for 6%. How much more money, rounded to the nearest dollar, would she have to pay back for the more expensive interest?

Guest Apr 13, 2021

#1**+1 **

With no payments until the end

5 yrs 8% = 10 000 ( .08) * 5 + 10000 = $ 14000

6% comp annually = 10 000 ( 1 + .06)^{5} = $ 13382.26 ** Take it from here !**

ElectricPavlov Apr 13, 2021