Question

carol is buying a new car. at bank A, car loan will cost him 11.5%. at bank b it will cost 12.25. if he borrows 8,000 how much will he save if he barrows from bank A?

Answer 1

divide per anum interest by 12, this will give you per month interest rate. you need to calculate cumulative amount i.e (amt at 0th month * int. rate of each month) till 12th month. At 12th month for A you will get $8971.8519. Do the same for B. subtract sum of A from B. This will give you final answer.

Answer 2

[amt at 0th mnth + (amt at 0th mnth/int. rate per mnth) ] + [amt at 1th mnth + (amt at 1th mnth/int. rate per mnth) ] + .....+ [amt at 12th mnth + (amt at 12th mnth/int. rate per mnth) ]

Answer 3

im still confused :/