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Arian Is About to Borrow $2350 from His Uncle

Question 6

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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?

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