Question

Shana plans to borrow $1,300 to buy a guitar. One bank is offering a simple interest rate of 5% per year on borrowed amounts. Another bank is offering a simple interest rate of 4%. Shana plans to repay the loan in 3 years. In dollars, how much can she save by borrowing from the bank with the lower interest rate? Record your answer in the box.

Answer 1

5% times 3=15%

4% times 3=12%

15-12=3

1300 times 0.03= $39

39 dollars.