Belle had the choice of taking out a four year car loan at 8.5% simple interest or a Five year loan at 7.75% simple interest. If she borrows $15,000, how much interest would she pay for each loan? Which option requires less interest?

Answer 1

I = PRT
I = 15,000 * 0.0775 * 5
I = $5,812.50

Do the same for the four-year loan.

Answer 2

1127