Katie has a loan balance of $5,000 .to pay off the $5,000 in three years it will cost katie $675 in interest. chris has a loan balance of $2,500. to pay off the $2,500 in five years it will cost chris $625 in interest. who is paying the highest interest rate, and what is the difference?

Katie has a loan balance of $5,000
interest$675
years3

if
$5,000100%
$675X%     X=675*100/5000
X=13.5% total interest 3 years
one year13.5/3=4.5% per year

Chris has a loan balance of $2,500
interest$625
years5

if
$2,500100%
$625X%     X=625*100/2500
X=25% total interest 5 years
one year25/5= 5% per year

a) Chris is  paying the highest interest rate 5% per year
b) The difference is (5%-4.5%)= 0.5%