Question

I will make you brainlist

Amber borrows $5,000 from the bank. If she repays the loan in 5 years, the annual interest rate is 8%, compounded annually. However, if she can repay the loan in 3 years, the annual rate is 6.5%, compounded annually. How much interest will Amber save by repaying the loan in 3 years? (to the nearest dollar)
A) $1,152
B) $1,307
C) $583
D) $971

Answer 1

Answer:

i think the aswer is b

Step-by-step explanation:

Answer 2

Answer:

B

Step-by-step explanation:

In 5 years:

5000(1.08)⁵

7,346.640384

In 3 years:

5000(1.065)³

6,039.748125

Saves:

7,346.640384 - 6,039.748125

= $1,306.892259