Adrian is about to borrow $3618 from his uncle. He has an option to repay the loan at the end of year 6 with 10.75% simple interest per year or with 5% interest per year compounded annually. What in the difference in interest paid (ic - is) at the end of the 5th year of the the options?

Answer rating: 100% (QA)

First we will calculate the simple interest optiont 1 as per below Simple interest P r n wher... View the full answer