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You want to borrow $7,500 to buy a used boat. First Century Bank will lend you the money at 15 percent
for 12 months. Fidelity Savings and Loan will lend you the money at 10 percent for 24 months.

Respuesta :

crazycandy303

Answer:

FCB is a better deal because you have to pay less interest overall. ($1125 compared to $1575)

Step-by-step explanation:

Use this formula to solve. FV = PV(1+i)^n

FV = Future Value

PV = Present Value

i = interest in decimal form

n = number of years

FCB: FV=7500(1.15)^1 = 8625

FSL: FV=7500(1.1)^2 = 9075

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