Misty has the choice of taking out a 25-year loan for $105,000 at 3.8% interest, compounded monthly, or the same loan at 20 years for a higher monthly payment. if she would pay a total of $57,810 in interest on the 25-year loan, how much in total would she pay in interest on the 20-year loan?

Less than $57,810

Step-by-step explanation:

APEX ANSWER

the answer is 200

step-by-step explanation:

the way the question is worded, it seems to imply the $264 interest is simple interest, not compound interest.

the simple interest for 2 years is $264; the simple interest for 1 year is $132.

$132 interest on a $600 investment means an interest rate of (132/600)*100 = 22%.

the value of $200 at 22% interest compounded annually for three years is

200%281.22%29%5e3

the amount of interest is that value, minus the original $200.