Simple & Compound Interest
Ms. Garcia needs to get a loan to install a new security system. The total cost of the equipment and setup is $$5,600.00$. She is considering two different simple interest loan options. Both options charge an annual interest rate of $5.5%.Option 1 is a 6-year loan, Option 2 is a 4-year loan. If Ms. Garcia chooses the 6-year loan how much more will she pay in interest instead of the 4-year loan?
$616