Difference in the total interest paid between the loans

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You are buying a boat that cost 26,000. you have the option of a pure interest only loan or an amortized loan. The interest only loan has an APR of 6 percent compounded monthly for 5 years. The amortized loan has an APR of 8 percent compounded monthly for 5 years.

You pay 15 percent down and finance the rest with the loans. How much is the difference in the total interest paid between the loans?

Reference no: EM131867784

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