SOLUTION: robert can take out a 3 year loan at 8% simple interest or a 2 year loan at 8 1/2% simple interest. If he borrows $7000 which option will demand less interest

Question 1041515: robert can take out a 3 year loan at 8% simple interest or a 2 year loan at 8 1/2% simple interest. If he borrows $7000 which option will demand less interest
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
robert can take out a 3 year loan at 8% simple interest
Interest = 7000*0.08*3 = $1680
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or a 2 year loan at 8 1/2% simple interest.
Interest = 7000*0.085*2 = $1190
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If he borrows $7000 which option will demand less interest?
See above.
Cheers,
Stan H.
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