Constance is planning to pay for part of her college using a $12,000 student loan. She is comparing the total costs of two loan options. Option A is to borrow the 12,000 for 5 years ay 4.75% annual compound interest. Option B is to borrow the $12,000 for 4 years at 5% annual compound interest. What is the difference in total cost of Option A compared to Option B?

Intermediate Algebra
10th Edition
ISBN:9781285195728
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter2: Equations, Inequalities, And Problem Solving
Section2.S: Summary
Problem 8S: What interest rate would you need to get to double an investment of 200 in eight years?
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Constance is planning to pay for part of her college using a $12,000 student loan. She is comparing the total costs of two loan options. Option A is to borrow the 12,000 for 5 years ay 4.75% annual compound interest. Option B is to borrow the $12,000 for 4 years at 5% annual compound interest. What is the difference in total cost of Option A compared to Option B?

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