Grisha needs to borrow $1,000 for an automotive repair. State National Bank charges 5% simple interest on the amount borrowed for the duration of the loan and requires the loan to be repaid in six equal monthly payments. Consumer’s Credit Union offers loans of $1,000 to be repaid in 12 monthly payments of $86.30. How much interest is charged by the State National Bank? How much interest is charged by the Consumer’s Credit Union?

Grisha needs to borrow $1,000 for an automotive repair. State National
Bank charges 5% simple interest on the amount borrowed for the duration
of the loan and requires the loan to be repaid in six equal monthly payments. Consumer’s Credit Union offers loans of $1,000 to be repaid in 12
monthly payments of $86.30. How much interest is charged by the State
National Bank? How much interest is charged by the Consumer’s Credit
Union?

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