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A college student is paying for tuition through private loans. Two lenders have approved the student for a $25,000 loan. Offer 1: 5.99% annual simple interest, with a total account balance of $32,487.50 after a 60-month term Offer 2: 3.75% annual interest compounded monthly for a 66-month term Assuming no payments are made, what is the difference in the account balances at the end of the loan terms? Round your answer to the nearest penny. $1,245.00 $1,770.87 $2,964.36 $3,319.94

User Favq
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Answer:

$1770.87

Explanation:

Formula; Simple Interest(I) = P × R × T/100

= $1770.87

User Yuri Zarubin
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