2 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-tear 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
To find the difference in the amount of interest Jarrod and Harold paid for their loans, we need to calculate the interest for each loan.
For Jarrod's loan:
Interest = Principal × Rate × Time
= $4,000 × 0.032 × 5
= $640
For Harold's loan:
Interest = Principal × Rate × Time
= $4,000 × 0.039 × 7
= $1,092
The difference in the amount of interest Jarrod and Harold paid for their loans is:
$1,092 - $640 = $452.