Miles and Nick each separately apply for and receive loans worth $5,000 apiece. Miles has a very good credit score, so his loan has an APR of 7.75%, compounded monthly. Nick’s credit score is rather low, so his loan has an APR of 13.10% interest, compounded monthly. If both of them repay their loans over a four year period, making equal monthly payments based on their own loan, how much more will Nick have paid than Miles?

Question

anonymous · Answer

a.
 
$619.68
 

b.
 
$267.50 
 

c.
 
$1,609.57
 

d.
 
$1,070.00