Question

At a local bank, the interest rate on a $3,500 personal loan with a 3-year term depends on a persons credit. A person with excellent credit would qualify for a 6% interest rate while a person with poor credit would qualify for a 20% interest rate. After repaying the loan, how much more interest would a person with poor credit pay compared to a person with excellent credit?

Answer 1

$849.24

Explanation:

The person with the 6% monthly interest would pay 106 a month, while the person with the 20% would pay 130.