Question

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

Answer 1

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