Megan borrowed $50,000 at 5% simple interest for 6 years. joseph borrowed $60,000 at 4% simple interest for 8 years. using the formula who will have a greater monthly payment, m, and by how much?

Below are the choices:

1) Megan will pay approximately $8 dollars more per month.

2) Megan will pay approximately $78 dollars more per month

3) Joseph will pay approximately $8 dollars more per month.

4) Joseph will pay approximately $78 dollars more per month.

Below is the solution:

m = (p + prt) / (12t)

megan ...

m = (50,000 + (50000) (.05) (6) / 12 (6)

m = 50000 + 15000 / 72

m = 65000/72

m = 902.78

joseph ...

m = (60000 + (60000) (.04) (8) / 12 (8)

m = 60000 + 19200 / 96

m = 79200/96

m = 825

megan pays 77.78 (approximately 78) more per month