<x 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
To find the amount of interest paid by each customer, we can use the formula: Interest = principal * rate * time.
For Jarrod:
Interest = $4,000 * 0.032 * 5 = $640.
For Harold:
Interest = $4,000 * 0.039 * 7 = $1,092.
The difference in the amount of interest paid by Jarrod and Harold is $1,092 - $640 = $452.
Therefore, the correct answer is C) $452.