Megan borrowed $50,000 at 5% simple interest for 6 years. Joseph borrowed $60,000 at 4% simple interest for 8 years. The formula can be used to calculate the monthly payment, m, where P is the principle amount borrowed, r is the rate expressed as a decimal, and t is the amount of time for the loan, in years. Who will have a greater monthly payment, and by how much?
Answer
A
Megan will pay approximately $8 dollars more per month.
B
Megan will pay approximately $78 dollars more per month
C
Joseph will pay approximately $8 dollars more per month.
D
Joseph will pay approximately $78 dollars more per month.