Running head: ALGEBRA DISCUSSIONAlgebra DiscussionStudents
NameInstitutional Affiliation1ALGEBRA DISCUSSION2Algebra Discussion
=principa rate time100 =$1300 79.9 1100 = 1038.7Total cost= + =
$1300+ $1038.7= $2338.7 =principa rate time100 =$1300 0.5
1100=6.5=1300 + 6.5= 1306.5ALGEBRA DISCUSSION3In the first scenario
we are dealing with annual percentage rate whereas the
secondscenario is the simple interest. Both are a percentage of the
principal one borrows as well as theamount of the money that is to
be paid to the lender on top of the borrowed amount. However,APR is
normally higher than interest rate because the APR shows the total
cost of borrowingmoney. Interest rate shows only the base cost of
borrowing money (Nakov, 2005). A s …