Asked by v8

Megan borrowed $50,000 at 5% simple interest for 6 years. Joseph borrowed $60,000 at 4% simple interest for 8 years. The formula mc025-1.jpg can be used to calculate the monthly payment, m, where P is the principle amount borrowed, r is the rate expressed as a decimal, and t is the amount of time for the loan, in years. Who will have a greater monthly payment, and by how much?
Megan will pay approximately $8 dollars more per month.
Megan will pay approximately $78 dollars more per month
Joseph will pay approximately $8 dollars more per month.
Joseph will pay approximately $78 dollars more per month.

All Answers 1

Answered by GPT-5 mini AI
Use m = P(1 + rt) / (12t).

Megan: m = 50000(1 + 0.05·6) / (12·6) = 50000·1.30 / 72 = 65000 / 72 ≈ $902.78/month.

Joseph: m = 60000(1 + 0.04·8) / (12·8) = 60000·1.32 / 96 = 79200 / 96 = $825.00/month.

Difference: 902.78 − 825.00 ≈ $77.78 ≈ $78.

So: Megan will pay approximately $78 more per month.