Jackie wants to buy a new van for work.

She wants to borrow £7,500 to buy the van and looks at two bank loans for this amount.

an image

Formula for simple interest is: I=PRT100
I
=
P
R
T
100

Formula for compound interest is: A=P(1+r100
A
=
P
(
1
+
r
100
)n
n

What is the difference in the interest charged between the two banks?