Asked by kevvo
egan 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 total repayment = P(1 + rt) and monthly payment = total / (12t).
Megan: total = 50,000(1 + 0.05·6) = 65,000 → monthly = 65,000 / 72 ≈ $902.78
Joseph: total = 60,000(1 + 0.04·8) = 79,200 → monthly = 79,200 / 96 = $825.00
Difference = 902.78 − 825.00 ≈ $77.78 ≈ $78.
So: Megan will pay approximately $78 more per month.
Megan: total = 50,000(1 + 0.05·6) = 65,000 → monthly = 65,000 / 72 ≈ $902.78
Joseph: total = 60,000(1 + 0.04·8) = 79,200 → monthly = 79,200 / 96 = $825.00
Difference = 902.78 − 825.00 ≈ $77.78 ≈ $78.
So: Megan will pay approximately $78 more per month.
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