Mathematics

Damarion Pennington

25 July, 20:14

Peter wants to borrow $3,000. He has two payment plans to choose from. Plan A is 4% interest over 6 years. Plan B is 5% interest over 4 years. Using the formula m=P+Prt/12t for payment, m, which statement best compares the plans?

A. Plan A has a monthly payment of about $23 less and a total interest charge of $120 less than plan B.

B. Plan A has a monthly payment of about $23 less and a total interest charge of $120 more than plan B.

C. Plan A has a monthly payment of about $23 more and a total interest charge of $120 more than plan B.

D. Plan A has a monthly payment of about $23 more and a total interest charge of $120 less than plan B.