Henry to out a 4-year loan for $5,000 paid 4.2% annual simple interest.Ingrid took a 6-year loan for 5,000 and paid 3.9 annual simple interest.What is the difference between the amounts of interest Henry and Ingrid paid for their loans
330
To find the difference between the amounts of interest Henry and Ingrid paid for their loans, we need to calculate the interest paid by each of them first.
First, let's calculate the interest Henry paid:
Principal amount (P) = $5,000
Rate of interest (R) = 4.2% = 0.042 (as a decimal)
Time (T) = 4 years
Simple interest formula: Interest (I) = P * R * T
Substitute the values: I = $5,000 * 0.042 * 4
I = $840
Henry paid $840 in interest for his loan.
Next, let's calculate the interest Ingrid paid:
Principal amount (P) = $5,000
Rate of interest (R) = 3.9% = 0.039 (as a decimal)
Time (T) = 6 years
Simple interest formula: Interest (I) = P * R * T
Substitute the values: I = $5,000 * 0.039 * 6
I = $1,170
Ingrid paid $1,170 in interest for her loan.
To find the difference between the amounts of interest paid, we subtract the interest Ingrid paid from the interest Henry paid:
$840 - $1,170 = -$330
Therefore, the difference between the amounts of interest that Henry and Ingrid paid for their loans is -$330. This means that Ingrid paid $330 more in interest than Henry.
To find the difference between the amounts of interest Henry and Ingrid paid for their loans, we need to calculate the interest paid by each of them.
For Henry's loan:
Principal (P) = $5,000
Interest Rate (R) = 4.2%
Time (T) = 4 years
The formula to calculate simple interest is: Interest (I) = (P * R * T) / 100
So, for Henry's loan: I = (5000 * 4.2 * 4) / 100
Calculating the above expression: I = 840
Therefore, Henry paid $840 in interest for his loan.
For Ingrid's loan:
Principal (P) = $5,000
Interest Rate (R) = 3.9%
Time (T) = 6 years
Using the same formula, we can calculate Ingrid's interest: I = (5000 * 3.9 * 6) / 100
Calculating the above expression: I = 1170
Therefore, Ingrid paid $1170 in interest for her loan.
Now, to find the difference between the amounts of interest:
Difference = Ingrid's Interest - Henry's Interest
Difference = 1170 - 840
Calculating the above expression: Difference = $330
Therefore, the difference between the amounts of interest Henry and Ingrid paid for their loans is $330.
Harry: 5000 * .042 * 5
Ingrid: 5000 * .039 * 5
difference: 5000 * .003 * 5 = ____