GIVEN:
We are told that a customer borrowed $2000 and then $1000 both at the rate of 10% for 1 year.
Required;
To determine how much he would have saved if he had taken a loan of $3000 at the rate of 8% for 1 year instead.
Step-by-step solution;
We will calculate the interest charged on the loans of $2000 and $1000 as follows;
Also, we have;
This means the interest payable on both loans will be $300 (200 + 100).
To determine the amount of interest payable on the loan of $3000;
Observe that the customer would be paying less if he had taken one sum of $3000 at the rate of 8%, and therefore the amount he would have saved is;
ANSWER:
Option A is the correct answer. The customer would have saved $60