nadine is taking out a small business loan of $10,000,which she intends to pay back in 5 years. First bank offers her a simple interest(S.I) loan at 5.5%, and second bank offers her a compound interest loan at 5.25%.
a)which loan should she choose in order to pay back less interest?.(Hint: show by calculation) ....i think it might be the S.I but how to show the calculation..
a)which loan should she choose in order to pay back less interest?.(Hint: show by calculation) ....i think it might be the S.I but how to show the calculation..