Sub represent a
14 Orlando wants to borrow $3,000 for the
purchase of a used car. He has to pay
back the loan after 4 years. The two loan
options are simple interest at a rate of
5.8% each year, or interest compounded
annually at a rate of 5.2% each year,
Which loan option should he choose,
simple or compound, and how much less
will he owe for that option? (Lesson 11)
F Compound interest; $0.22
G Simple interest; $0.63
H Compound interest; $21.62
3 Simple interest; $62.92