Rob borrowed $4200 to purchase a new kayak. His bank offered him a simple interest loan at a rate of 6.5%with a single repayment due in one year. A credit union offered him the money at an annual rate of 3.95%compounded quarterly with a single repayment due in one year.

What is the least costly and by how much?

Answer rating: 100% (QA)

Solution To determine which loan is least costly we need to calculate the total amount that Rob will ... View the full answer