Steven borrowed $5000.00 from bank a for a 3% per annum for 3 years Fred borrowed $5000.00 from bank b for a 4% for 2 years who pays more interest on his loan
well, compare the two amounts
5000*.03*3
5000*.04*2
To determine who pays more interest on his loan, we need to calculate the interest for each loan.
For Steven's loan:
Principal amount = $5000.00
Interest rate = 3% per annum
Time period = 3 years
To calculate the interest, we can use the formula: Interest = (Principal * Interest Rate * Time) / 100
Interest for Steven's loan = (5000 * 3 * 3) / 100 = $450.00
For Fred's loan:
Principal amount = $5000.00
Interest rate = 4% per annum
Time period = 2 years
Interest for Fred's loan = (5000 * 4 * 2) / 100 = $400.00
Therefore, Steven pays more interest on his loan, with $450.00 compared to Fred's $400.00.