Question

Megan 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?

Answer 1

Step-by-step explanation:

Given  

Megan 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.

•  We know that S.I = P R T / 100
• According to question we get Megan borrowed $ 50000 at 5%, so interest after 6 years will be I = 50000 x 5 x 6 / 100
•                 = $ 15,000
• Now Joseph borrowed $ 60,000 at 4%, so interest after 6 years will be
• I = 60,000 x 4 x 6 / 100
•    = $ 14,400
• Therefore Megan paid more interest than Joseph by 15,000 – 14,400
•                                                                                      = $ 600

Answer 2

Answer:

Megan will pay approximately $78 dollars more per month

Step-by-step explanation:

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