Comparing Loan Sources Grisha Stewart needs to borrow $1000 for an automobile repair. She finds that 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. Consumers Credit Union offers loans of $1000 to be repaid in 12 monthly payments of $86.30. a) How much interest is charged by the State National Bank? b) How much interest is charged by the Consumers Credit Union? c) What is the APR, to the nearest half percent, on the State National Bank loan? d) What is the APR, to the nearest half percent, on the Consumer Credit Union loan?
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