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28 February, 06:40

Which of the following two loans is the better option? Why?

Simple Interest Loan - principal P = $5000; time t = 5 years; interest rate r = 6%

Compound Interest Loan - principal P = $5000; time t = 2 1/2 years; interest rate r = 5%

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  1. 28 February, 09:28
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    Answer: si = 1500 ci = 1250
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