Answer:
Amount of loan = $6800
Time period = 91 days
When interest rate is 4.25%
[tex]Amount = 6800\times(1+\frac{4.25}{12\times 100})^{12\times\frac{91}{30\times 12}}\\\\Amount=\$6873.32[/tex]
When interest rate is 4.23%
[tex]Amount = 6800\times(1+\frac{4.23}{12\times 100})^{12\times\frac{91}{30\times 12}}\\\\Amount=\$6872.96[/tex]
So, the amount paid with 4.23% interest rate is less
Hence, 4.23% interest rate is a better deal for Jay.
Amount saved = 6873.32 - 6872.96
= $0.36
