new computer for \( \$ 1,150 \), He is considering two credit options. Option A offers a 3 year loan with terest rate while Option B offers a 5 year loaif with a \( 6.5 \% \) simple interest rate. Which is the better option and how much will he save?

It appears there's some missing information in your query. Specifically, the interest rate for **Option A** (the 3-year loan) wasn't provided. To accurately compare the two credit options and determine which is better, I need the following details: 1. **Option A:** - **Loan Term:** 3 years - **Interest Rate:** *[Please provide the interest rate]* 2. **Option B:** - **Loan Term:** 5 years - **Interest Rate:** 6.5% (Simple Interest) Once you provide the interest rate for Option A, I can help you calculate the total costs for both options and determine which one offers the better deal, including how much you would save by choosing the more favorable option. **Example Calculation (Assuming Option A has a 5% Annual Interest Rate):** *Note: This is just an example. Please replace the 5% with the actual rate for accurate results.* 1. **Option A: 3-Year Loan at 5% Simple Interest** - **Principal (P):** $1,150 - **Rate (R):** 5% per annum - **Time (T):** 3 years - **Interest (I):** \( I = P \times R \times T = 1150 \times 0.05 \times 3 = \$172.50 \) - **Total Amount to Repay:** \( 1150 + 172.50 = \$1,322.50 \) 2. **Option B: 5-Year Loan at 6.5% Simple Interest** - **Principal (P):** $1,150 - **Rate (R):** 6.5% per annum - **Time (T):** 5 years - **Interest (I):** \( I = P \times R \times T = 1150 \times 0.065 \times 5 = \$373.75 \) - **Total Amount to Repay:** \( 1150 + 373.75 = \$1,523.75 \) **Comparison:** - **Option A Total Repayment:** $1,322.50 - **Option B Total Repayment:** $1,523.75 - **Savings with Option A:** \( 1523.75 - 1322.50 = \$201.25 \) In this example, **Option A** would be the better choice, saving you **$201.25** over the life of the loan. **Please provide the missing interest rate for Option A** so I can give you a precise comparison tailored to your situation.