Question

Karl is buying a new car. At bank A, a car loan will cost him 11.5 %. At bank B it will cost 12.25%. If he borrows $8,000, how much will he save if he borrows from bank A?

Answer 1

Bank A: 11.5% of $8,000 =
`(11.5)/(100) * \$8000= \$920`
Bank B: 12.25% of $8,000 =
`(12.25)/(100) * \$8000= \$980`

He saves $980 - $920 = $60