Running head: ALGEBRA DISCUSSIONAlgebra DiscussionStudents
NameInstitutional Affiliation1ALGEBRA DISCUSSION2Algebra
DiscussionLender scenario: = =principalratetime100$130079.91100 =
$1038.70Total cost= + = $1300+ $1038.70= $2338.70Credit card
scenario: = =principalratetime100$13000.51100= $6.50Total amount at
the end of 12 months = $1300 + $6.50= $1306.50In 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 ba …