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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?

 Apr 13, 2021
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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 !

 Apr 13, 2021

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