Question

A farmer can borrow $8,000 for planting supplies at the

County Co-op for 12 months at a simple interest rate of 9
percent. He can also borrow the same amount from the
City Bank in the County Seat for 12 months at a compound
interest rate of 6 percent.
Compute the missing information in the table:

Answer 1

Bank A

interest = 1500*2*0.18= 540$

total owed = 1500+540= 2040$

Bank B

compound interest= 1881.6

total owed = 1500+1881.6= 3381.6$

Explanation: