Arian Is About to Borrow $2350 from His Uncle

question 6

Short Answer

Arian is about to borrow $2350 from his uncle. He has an option to repay the loan at the end of year 5 with 10.75% simple interest per year or with 5% interest per year, compounded annually.
What is the difference of the total interest paid over 5 years between the two options?

---

Definitions:

Apoptosis

A process of programmed cell death that occurs in multicellular organisms, helping to eliminate cells that are no longer needed or are a threat to the organism.

Programmed Cell Death

The process by which cells intentionally die as part of an organism's growth or development, also known as apoptosis.

Operon

A functioning unit of genomic DNA containing a cluster of genes under the control of a single regulatory signal or promoter.

Regulatory Sequence

is a segment of DNA where regulatory proteins bind to control gene expression by turning genes on or off.