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12 April, 20:29

Sarah takes out a loan for $30,000. She has two choices for the loan; a 5 year loan with 5% simple interest or a 7 year loan with 4% compound interest. What is the difference in the amount of interest she would owe?

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  1. 12 April, 20:52
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    5%

    Total interest paid:

    $5,617.46

    Total payments:

    $35,617.46

    4%

    Total interest paid:

    $4,445.43

    Total payments:

    $34,445.43

    Your Anwser Would Be 1172.03
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