You need to borrow $1000. You can borrow it for 3 years at 8% simple interest, or for 2 years at 11% simple interest. Which loan will cost more? By how much?

He'll pay $ 20 more for the first loan.

Step-by-step explanation:

Since the loans are at a simple interest we can use this equation to compute the total amount that will be paid:

M = C(1 + i*t)

Where M is the total after interest, i is the rate at wich the loan was given and t is the amount of time.

For the first loan:

M = 1000*(1 + 0.08*3) = 1000*(1 + 0.24) = 1000*(1.24) = 1240 $

For the second loan:

M = 1000*(1 + 0.11*2) = 1000*(1 + 0.22) = 1000*(1.22) = 1220 $

The difference in price on the loans is 1240 - 1220 = 20 $

6.5

step-by-step explanation:

you said it was in the question

~courtney