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23 October, 01:22

You want to borrow $2,000. You can get 3-year loan with a 15% simple interest rate or a 5-year loan with a 10% simple interest rate. Which loan costs less?

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  1. 23 October, 04:54
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    3-years loan

    Step-by-step explanation:

    3 years:

    P = $2000

    R = 15%

    t = 3 years

    A = P (1 + R/100) t

    = $2000 (1 + 0.15) ³

    = $3041.75

    5 years:

    P = $2000

    R = 10%

    t = 5 years

    A = P (1 + R/100) t

    = $2000 (1 + 0.10) 5

    = $3221.02
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