Greg borrows $1975 at a simple interest rate of 5% for 3 years. Linda borrows $1975 at a simple interest rate of 4.5% for years. Who pays more interest at the end of their loan? How much more

Greg pays more interest than Linda

He pays $17.45 more

Step-by-step explanation:

Greg

P=$1975

R=5%=0.05

T=3 years

Simple interest=P*R*T

=$1975*0.05*3

=$296.25

Linda

P=$1975

r=4.5%=0.045

n=1

t=3

Linda's Interest is compounded once per period, so we this formula

Compound Interest = P (1+r) ^t

=$1975 (1+0.045) ^3

=$1975 (1.045) ^3

=$1975 (1.141166125)

=$2,253.80

Interest paid=$2,253.80-$1975

=$278.8