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Sue can either borrow $10,\!000$ dollars for $5$ years with a simple interest of $7\%$ 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 Aug 4, 2018
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simple interest

10000 x .07 = 700 

700 x 5 = 3500

total 13500

 

compund interest

10000(1.06)^5 = 13382.26

 

13500 - 13382.26 = 117.74

 

118 rounded

Guest Aug 7, 2018

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