Question

Michelle needs to calculate the interest for the length of each loan. Bank A will charge $2430 in interest, and Bank B will charge $1980 in interest. How much will Michelle save by borrowing from Bank B?

Answer 1

Michelle will save $450 in interest by choosing Bank B over Bank A for her loan. We get this answer by calculating the difference between the interest received from Bank A to Bank B.

Step-by-step explanation:

The question pertains to Michelle, who needs to calculate the savings in interest over the length of each loan. If Bank A will charge her $2430 in interest, and Bank B will charge her $1980 in interest, we calculate the difference by subtracting the smaller interest amount from the larger one:

Interest saved = Interest from Bank A - Interest from Bank B

Interest saved = $2430 - $1980 = $450

Therefore, Michelle will save $450 by borrowing from Bank B instead of Bank A.