Laura has two loan options for $⁢5,000 : a simple interest loan at 4% annually and a compound interest loan at 3.5% annually, compounded annually for 2 years. Which loan will be less expensive in terms of total interest paid? Compound Interest Formula: A=P⁢(1+(r)/(n))^n⁢t Simple Interest Formula: A=P⁢(1+r⁢t)