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? (Round all dollar values to the nearest cent.)
Economics - Financial Markets
Stacey Warren - Expert brainly.com
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7.75% (0.0775) x 5,000 = $387.5 x 4 = $1550 (over four year period)
13.10% (0.131) x 5,000 = $655 x 4 = $2620
$2620 - $1550 = $1,070 (rounded to nearest cent)
So the answer is D.