Stacy is borrowing $5,000 at 4.25% interest for 5 years. She can choose simple interest or compound interest. Which one will allow her to owe the LEAST amount of money in interest over those 5 years?
Accepted Solution
A:
Answer:Simple interest will allow her to owe the least amount of money.Step-by-step explanation:Compound interest = $1156.73Simple interest (I) = P * r * t$1062.50