Peter wants to borrow $3,000. He has two payment plans to choose from. Plan a charges 4% interest over 6 years. Plan b charges 5% interest over 4 years. The formula mc024-1. Jpg can be used to calculate the monthly payment, m, where p is the principle amount borrowed, r is the interest rate expressed as a decimal, and t is the time of the loan, in years. Which statement best compares the plans?.