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

Answer 1

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.