Question

James needs $450 to repair his car. His aunt says she will lend him the money if he pays the total

amount plus 3% simple interest in one year. His grandmother says she will lend him the money if he
pays the total amount plus $15. Who should Jamesponow the money from? How much money will he
pay back l

Answer 1

He should borrow from his aunt since the interest is lower.

$463.50

Explanation:

Aunt:

interest = 3% of $450 = 0.03 × $450 = $13.50

Grandmother:

interest = $15

He should borrow from his aunt since the interest is lower.

$450 + $13.50 = $463.50