Interest amount minus simple interest amount

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Reference no: EM13736529

Arian is about to borrow $2,587.11 from his uncle. He has an option to repay the loan at the end of year 4 with 3.11% simple interest per year or with 6.8% interest per year, compounded annually. What is the difference of the total interest paid over 4 years between the two options? (Be careful of sign of answer. Use compound interest amount minus simple interest amount).

Reference no: EM13736529

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