Question

Dustin is taking out a loan for $2000 and wants to know how much money he will save by taking a 2-year loan at 14% interest instead of 20% interest.

Total repayment for the 20% loan: $2400
Total repayment for the 14% loan: $2240
How much can Dustin save: $160

Answer 1

Dustin can save $160 by taking a 2-year loan at 14% interest instead of 20% interest.

Step-by-step explanation:

Dustin can save $160 by taking a 2-year loan at 14% interest instead of 20% interest. The total repayment for the 20% loan is $2400, while the total repayment for the 14% loan is $2240. Therefore, the savings would be $2400 - $2240 = $160.