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Megan borrowed $50,000 at 5% simple interest for 6 years. joseph borrowed $60,000 at 4% simple interest for 8 years. using the formula who will have a greater monthly payment, m, and by how much?

Respuesta :

Answer:

Megan will pay approximately $78 more per month.

Step-by-step explanation:


isyllus

Answer:

Megan will pay $78 more than Joseph.

Step-by-step explanation:

Formula: Simple Interest = P x R x T

Megan Info

  • Borrowed Money (P)=$50,000
  • Rate of interest (r)=0.05
  • Time (t) = 6 years

Simple interest paid by Megan = 50,000 x 0.05 x 6 = 15000

Total amount paid in 6 years = 50000 + 15000 = $65,000

Monthly payment by Megan (m) = 65000÷72 = $903

Joseph Info

  • Borrowed Money (P)=$60,000
  • Rate of interest (r)=0.04
  • Time (t) = 8 years

Simple interest paid by Magan = 60,000 x 0.04 x 8 = 19200

Total amount paid in 8 years = 60000 + 19200 = $79,200

Monthly payment by Joseph (m) = 79200÷96 = $825

Now we find Difference of monthly payment

⇒Megan - Joseph

⇒ 903-825

⇒ $78

Thus, Megan will pay $78 more than Joseph.




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