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22 December, 18:35

Amber borrows 5000 from the bank. If she repays the loan in 5 years, the annual rate is 8%, compounded annually. However if she can repay the loan in 3 years th annual rate is 6.5% compounded annually. How much interest will amber save by repaying the loan in 3 years?

A. 1152

B. 1307

C. 583

D. 971

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  1. 22 December, 18:42
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    Step-by-step explanation:

    Amber borrows 5000 from the bank. If she repays the loan in 5 years, the annual rate is 8%, compounded annually ... However if she can repay the loan in 3 years the annual rate is 6.5%.

    therefore the answer is answer choice b, 1307
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