Answer:
it is best for Mr. Stripling to borrow money from Bank B ( Emerson Bank) to complete his Graduate courses
Step-by-step explanation:
Given that:
Mr. Stripling needs to take out a loan of $20,000 to be able to pay for his Graduate course.
That means , he needs a principal amount of $20,000
SO , he has two options;
A - To borrow from Union Hill Bank which offers him 7% interest for 3 years.
B - To borrow from Emerson Bank which offers him 5% interest in 4 years
For Bank A; (Union Hill Bank)
Let Principal = $20,000
Rate = 7%
T = 3 years
We can easily calculated for the simple interest S.I by the formula:
[tex]S.I = \dfrac{PRT}{100}[/tex]
[tex]S.I = \dfrac{20,000*7*3}{100}[/tex]
[tex]S.I = 200*7*3[/tex]
S.I = $4,200
For Bank B ; ( Emerson Bank)
[tex]S.I = \dfrac{PRT}{100}[/tex]
[tex]S.I = \dfrac{20,000*5*4}{100}[/tex]
[tex]S.I = 200*5*4[/tex]
S.I = $4,000
Thus; it is best for Mr. Stripling to borrow money from Bank B ( Emerson Bank) to complete his Graduate courses.
