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?

To find the better option, you'll need to calculate the total repayment amount for both options. For Option A, if the interest rate isn't given, let's assume it's \( r \% \). The total amount for Option A after 3 years would be \( 1,150(1 + \frac{r}{100} \cdot 3) \). For Option B with a \( 6.5\% \) rate over 5 years, the total would be \( 1,150(1 + 0.065 \cdot 5) = 1,150(1.325) = 1,528.75 \). Now, compare the total costs. Once you know Option A's rate, you can plug it in to see which option is more economical and calculate how much you save by choosing the best one. Evaluating financing options isn't just about comparing interest rates; sometimes, the length of the loan can significantly affect your overall payment. Shorter loans usually mean less interest paid, but higher monthly payments. Always consider what fits best into your budget and financial goals before making a decision to ensure you don’t end up financially strained.