Question

Enna is taking out a $1,200 student loan to pay for some college expenses. She is considering two different loan options that are described in the table below.

College Loan Options
Option Annual Compound
Interest Rate Repayment Time
A 4.5% APR 5 years
B 3.8% APR 4 years

How much more will it cost Jenna to repay option A than option B?

Answer 1

for A she pay altogether $1470

for B she pay altogether $1382.4