Answer:
Simple interest will allow her to owe the least amount of money.
Step-by-step explanation:
Compound interest = $1156.73
Simple interest (I) = P * r * t
$1062.50
Answer:
Simple Interest
Step-by-step explanation:
Compound interest:
[tex]a = p {(1 + \frac{r}{100} )}^{n} [/tex]
a = total amount
p = principal
r = rate of interest
n = no. of years
a = 5000(1.0425)⁵
= 5000(1.231)
= $6155
Simple interest:
[tex]I = \frac{prt}{100} [/tex]
I = amount of interest
t = time
I = (5000×4.25×5)÷100
= 106250 ÷ 100
= $1062.50
total = $5000 + $1062.50
= $6062.50
(Correct me if i am wrong)
