Two customers took out loans from a bank.
Jarrod took out a 5-year loan for $4,000 and paid 3.2% annual simple interest.
Harold took out a 7-year loan for $4,000 and paid 3.9% annual simple interest.
What is the difference between the amount of interest Jarrod and Harold paid for their loans???
A $1092
B $640
C $452
D $1732
For Jarrod's loan, the interest can be calculated using the formula:
Interest = Principal * Rate * Time
Interest = $4,000 * 0.032 * 5 = $640
For Harold's loan, the interest can be calculated in the same way:
Interest = $4,000 * 0.039 * 7 = $1,092
The difference between the amount of interest Jarrod and Harold paid is:
$1,092 - $640 = $452
Therefore, the correct answer is C) $452.
are you sure?
Apologies for the incorrect answer. Let's redo the calculation.
For Jarrod's loan:
Interest = Principal * Rate * Time
Interest = $4,000 * 0.032 * 5 = $640
For Harold's loan:
Interest = Principal * Rate * Time
Interest = $4,000 * 0.039 * 7 = $1,092
The difference between the amount of interest Jarrod and Harold paid is:
$1,092 - $640 = $452
Therefore, the correct answer is C) $452.