Question 1150183
For mutual fund:
(1) {{{ I[1] = P[1]*r[1]*t[1] }}}
(1) {{{ I[1] = 5000*.075*t[1] }}}
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For loan:
(2) {{{ I[2] = P[2]*r[2]*t[2] }}}
(2) {{{ I[2] = 10000*.0375*4 }}}
(2) {{{ I[2] = 1500 }}}
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{{{ I[1] = I[2] }}}
(1) {{{ 1500 = 5000*.075*t[1] }}}
(1) {{{ 1500 = 375*t[1] }}}
(1) {{{ t[1] = 4 }}}
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In 4 yrs the interest earned will be the same
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check:
(1) {{{ I[1] = 5000*.075*4 }}}
(1) {{{ I[1] = 1500 }}}
and
(2) {{{ I[2] = 1500 }}}
OK